The Maldives Tourism Development Corporation (MTDC) has recorded USD738,000 in net profit for the third quarter of 2023.
In the Third Quarter Report, MTDC recorded USD733,000 in net profit, which is a 29% increase compared to the USD572,000 in net profit recorded in the second quarter of this year. The company also recorded USD1.88 million in total revenue in the third quarter, which is a slight increase compared to the USD1.87 million recorded in the second quarter. The company also spent USD575,000 on the cost of operations and USD523,000 on administrative expenses.
MTDC was established in 2006 by the government to provide direct benefits to the residents of the Maldives. Since 2010, MTDC has been operating at a loss but is now recording profits with the efforts made to strengthen the company.
The performance of MTDC grew remarkably during 2021. Even though there were no significant changes to the revenue, profit before tax increased significantly by USD10 million with USD13.7 in net profit in 2021 compared to the USD3.3 million in 2020. The main reason for the change was the increase in the net gain on lease modification, as the company has recognised the net investment in sublease in relation to the islands leased.
In 2022, the revenue increased by 77.72% from USD 4.13 million in 2021 to USD7.34 million in 2022 while the gross profit increased by 1.73 times from USD 1.77 million in 2021 to USD 4.84 million in 2022. The profit before tax and net profit, each reduced by 78.54% as the net gain on lease modification of USD13.7 million, was too significant compared to the results of operations of the business.