MTDC posts weak Q1 performance, profits below $500K

Maldives Tourism Development Corporation (MTDC) has posted profits of USD 424,546 for the first quarter of the year.

The first quarter financial statement published on Monday shows that the public company received revenues of USD 2.6 million, out which USD 1.6 million was considered gross profit. Administrative expenses, however, totalled USD 1.2 million during the quarter from January till March, lowering the net profit to USD 424,546.

This is a weak performance compared to the previous quarter where MTDC posted a significant 69 percent year on year increase in profits. The company recorded a net profit of USD5.8 million during the quarter from October to December 2016 — a substantial increase from the USD1.7 million received during the same period of the previous year.

MTDC’s current portfolio:

  • Kihavah Huravalhi island in Baa Atoll: Subleased to Thai hospitality group Anantara and under operation from December 2010 onwards as Anantara Kihavah Villas, a five-star deluxe resort.
  • Magudhuvaa island in Gaafu Dhaalu atoll: Subleased to Turkey’s Aydeniz Group and under operation from November 2011 onwards as Ayada Maldives, a five-star deluxe resort.
  • Naagoashi island in Haa Dhaal atoll: Forty percent of development complete and expected to be finished by the end of this year.

Created by the government in the early 2000s as a public limited liability company, MTDC has developed a few resorts through sublease agreements. The company, however, is yet to realise the full potential and has faced several setbacks in completing new projects.

MTDC has recently sold two resorts to foreign companies; the resort developed on the island of Herathera in the southernmost Addu atoll to Singapore’s Canaries Pvt Ltd and Per AQUUM Niyama resort to its sublease partner Minor International.

Photo courtesy: Nattu

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