Aspial Corp's second quarter net loss widened to S$6.5 million from S$6.3 million as revenue fell 29 per cent to $104.6 million.
For the six months ended June 30, the group chalked up a net loss of S$205,000, down from S$3.3 million. Revenue was 10 per cent lower at S$245.5 million, mainly due to fewer development projects this year and lower sales from the jewellery business.
On the other hand, the financial service business continued to record higher revenue.
Revenue from the real estate business declined by 29 per cent to S$97.4 million in the first half year. This was mainly contributed by the progress recognition of sales from CityGate and final recognition of sales from Waterfront@Faber.
In comparison, the first six months of 2016 saw higher revenue contributions from The Hillford, Waterfront@Faber, Urban Vista and CityGate.
Although the group has made good progress in the sales and construction of its overseas projects, it cannot recognise these revenues even as construction works progress. Revenue is recognised only when the work is completed, said Aspial.
Revenue from the financial service business rose 22.4 per cent to S$93.4 million in the first six months. The increase was due to higher interest income and sales from the retailing and trading of jewellery and watches.
However, the ongoing consolidation of retail network and weak consumer sentiment continued to affect the jewellery business, which saw revenue decreasing by S$8 million to S$58.4 million.
Quarterly loss per share worsened to 0.34 cent from 0.33 cent previously while net asset value per share rose to 16.66 cents compared to 16.14 cents as at Dec 31.
As for prospective earnings, the group expects CityGate to contribute to its revenue and profit this year and next as it continues to record sales for the remaining unsold commercial units and construction progress on schedule.
In Australia, Aspial has made good progress for its Australia 108 and Avant projects, with construction works ahead of schedule.
It expects to complete stage 1 and 2 out of the 6 stages for Australia 108 and all of Avant in 2018.
In line with this, the group expects to recognise revenue and profit from the Australia projects when the completed units are delivered to buyers from 2018 to 2020.
In the next 12 months, it will focus on the sale of Nova City in Cairns and the launch of Albert Street project in Brisbane.
In Penang, Aspial has completed the refurbishment, upgrading and building works of nine properties.
Despite its half-time losses, the group expects to remain profitable for the full year.