Cresta's results reflect bearish year

For the period, the group - which recorded increased costs due to salary adjustments and soaring rental costs - saw net profit before taxation rising marginally to P23.77 million from P23.66 million in the prior period, while a 9% increase on average room rate resulted in a 7.8% increase in revenues, says a statement accompanying the results:

"There was an 8.8% increase in direct costs during the period in comparison to the same period last year. This was mainly as a result of increased newly negotiated rentals, which commenced in July 2010. The increase in rentals was P7 million during the 12 months to June 2011 compared to the same period last year. The remaining increase in direct costs is in the costs of sales which is directly linked to the growth in revenue."