OPERATING AT JUST 37% OF ITS CAPACITY,  "Turism" Covasna has seen its profit drop by two thirds in 2009

The net profit of "Turism" Covasna, controlled by SIF "Transilvania", has dropped by two thirds last year, from 2.411 million to 804,025 lei, which the company considers a good result, given the fact that in its revenue and expense budget for last year, the company only expected to make half of this amount.

The lodging company"s turnover dropped 31.3%, from 12,530 million lei to 8.608 million lei. The company"s total revenues also dropped 30.14%, from 13.013 million lei to 9.091 million lei, whereas expenses only decreased 20.97%, from 10.284 million lei to 8.127 million lei.

In 2009, the company has been operating with a reduced operating capacity compared to 2008. The company"s better than expected came on the back of the increase of the value of the contract with the National Pension and Health Insurance Department by 3%, as well as the signing of a contract to provide travel and leisure services to the Ministry of Tourism and Sports, providing accommodation to a Hungarian company for the shooting of a movie as well as organizing events such as weddings and conferences.

The company"s expenses also include those resulting from the mass layoffs of 104 employees in January 2009.

This year, the company"s shareholders have decided to take out a loan of a maximum of 5.6 million Euros, in order to launch a major investment program, as well as to increase its share capital by 4.7 million lei, to 15.09 million lei. This will be done by incorporating reserves and last year"s profit.

The planned investments concern the Căprioara hotel of Covasna, as well as the modernization of the other two hotels that the company owns in the same resort, named Covasna şi Cerbul.

SIF "Transilvania" controls 85.63% of the company.