RTG tumbles to $1,3mln FY14 loss

RTG tumbles to $1,3mln FY14 loss

HARARE, March 31 (The Source) – Hospitality group Rainbow Tourism Group plunged to a loss of $1,3 million for the full-year ended December 2014 from a profit of $1,1 million in the prior year, the company said on Tuesday.

Revenue marginally rose by five percent to $30,7 million, largely driven by foreign business –whose contribution has grown to 28 percent from 26 percent — and other innovative programmes.

The outbreak of the deadly Ebola disease in West Africa resulted in hotel cancellations worth $500,000.

Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) was 79 percent lower due to impairment charges of $2,8 million.

The group has $1,9 million held at Capital Bank which was liquidated last year and the amount was meant to refurbish hotel and conference centre.

In the year under review, RTG reduced its borrowings by seven percent to $22 million from $23,9 million.