Maldives Tourism Development Corporation (MTDC) reported a 19 percent decline in profit during the first quarter of the year, as lower revenue and higher operating costs weighed on earnings.

According to the company's quarterly financial statements, MTDC recorded a profit of USD 178,389 (MVR 2.8 million) during the first three months of the year, down from USD 219,282 (MVR 3.4 million) in the same period of 2025.

The decline represents a reduction of approximately MVR 600,000 in profit.

Revenue for the quarter stood at USD 1.2 million (MVR 19 million), while operating and employee-related expenses totaled USD 490,122 (MVR 7.7 million).

MTDC reported a profit of USD 1.2 million (MVR 19 million) in 2025.

MTDC returned to profitability in 2021 after 11 years. The turnaround was largely attributed to efforts to restructure agreements for islands leased to the company for tourism development, allowing it to generate more consistent income from subleasing and rental arrangements.

The company derives most of its revenue from leasing islands allocated to it for tourism purposes. However, profits have remained relatively modest.

MTDC first offered shares to the public in 2007, with shares initially carrying a face value of MVR 100. In 2014, the company reduced the face value of each share to MVR 10 as part of a restructuring process.

The company faced significant financial challenges as several tourism development projects stalled, limiting its ability to generate revenue and affecting overall performance.