PropNex Q3 profit slips 15.2% to $6.1m

PropNex shares closed at 54 cents on Tuesday, up 2.9 per cent or 1.5 cents.
PropNex shares closed at 54 cents on Tuesday, up 2.9 per cent or 1.5 cents.PHOTO: PROPNEX

SINGAPORE - Real estate agency PropNex on Wednesday posted a 15.2 per cent drop in its third-quarter net profit to $6.1 million from $7.2 million in the year-ago period, as it took in lower commission income while bearing higher staff costs and depreciation expenses.

For the three months to Sept 30, earnings per share stood at 1.65 cents, versus 1.95 cents in the year-ago period.

Revenue fell 1.3 per cent to $122.5 million, from $124.2 million last year, mainly due to decrease in commission income from agency services, which was partially offset by an increase in earnings from project marketing services.

According to PropNex, commission income from agency services fell as strong en bloc activities before the cooling measures contributed to the strong resale activities in 2018. Meanwhile, commission income from project marketing services increased as a significant number of option-to-purchase have been completed in this quarter.

Separately, staff costs rose by about $0.8 million or 30.9 per cent to $3.5 million, mainly attributable to salary increment, an increase in the average staff headcount, and the accrual of staff bonus on a quarterly basis, PropNex said.

No dividend has been declared for the quarter.

PropNex shares closed at 54 cents on Tuesday, up 2.9 per cent or 1.5 cents.