Dam Sen Park owner continues to suffer losses

In the last quarter of 2023, Phu Tho Tourist - owner of Dam Sen Cultural Park - lost 14 billion VND with revenue at its lowest level in the past two years.

The financial report of Phu Tho Tourist Service Joint Stock Company (Phu Tho Tourist - DSP) recently showed that in the fourth quarter of 2023, the company had 36.7 billion VND in revenue, a slight decrease compared to the same period in 2022 and the lowest level in the past two years. Higher cost of goods sold caused DSP to have a gross loss of more than 26 billion VND this quarter.

While the core business was poor, financial activities increased by nearly 64% to more than VND22 billion, including dividends and distributed profits, interest on deposits and loans. Deducting expenses, Phu Tho Tourist lost VND13.6 billion in the last quarter of 2023, lower than the same period in 2022 but the biggest loss quarter last year.

Management explained that the company is paying very high land rents compared to the revenue it earns. In the fourth quarter of 2023, land rents were about VND23.5 billion, equivalent to 64% of revenue, causing the company to incur losses.

Accumulated for the whole year, DSP had 212 billion VND in revenue, a slight decrease compared to the same period in 2022. However, the company returned to profit after three years of losses with a profit of about 4.5 billion VND. Phu Tho Tourist only completed 80% of the revenue target but doubled the profit plan for 2023.

DSP’s profits last year mainly came from financial activities. Revenue from this activity increased by nearly 75% to VND66.5 billion. Of which, dividends and profits distributed from subsidiaries and associated companies had the strongest increase, increasing 3.6 times.

The biggest contributor is Dam Sen Water Park Joint Stock Company (DSN) - the owner of Dam Sen Water. This company brought in nearly 20 billion VND in dividends for DSP. In 2023, Dam Sen Water made a record profit of 112 billion VND and was the second consecutive year of improved profits.

Swing game in Dam Sen Cultural Park. Photo: DSP — Swing game in Dam Sen Cultural Park. Photo: *DSP*

Phu Tho Tourist manages and operates four business units including: Dam Sen Cultural Park (also known as Dam Sen Dry), Ngoc Lan - Phu Tho hotel cluster, Dam Sen Tourist Service Center and Vam Sat Mangrove Ecotourism Area. The company also participates in Dam Sen Water and invests financially in two hotels including Saigon - Da Lat ( Lam Dong ) and Saigon - Dong Ha (Quang Tri).

Located in Dam Sen Park in District 11 (HCMC) which used to attract many tourists, the business situation of the two units has been in contrast recently. While Dam Sen Nuoc has recovered thanks to good communication campaigns, Dam Sen Kho - accounting for 80% of DSP revenue - has had declining results.

Phu Tho Tourist's leadership itself assessed that the old dry park was less attractive to young people, leading to a loss of competitive advantage. On the contrary, Dam Sen Nuoc "does not have much competition" in terms of water entertainment services and is focusing resources on renovating and renewing the landscape and infrastructure.

Siddhartha

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