Property and hospitality group Roxy-Pacific Holdings booked a sharp drop in second-quarter earnings on lower contributions from its property development and hotel business.
As a result, the interim dividend per share was 0.214 cent, down from 0.503 cent a year earlier. Net profit for the second quarter sank 26 per cent year on year to $14.7 million, as revenue slipped by 21 per cent to $77.8 million, the firm reported yesterday.
Roxy-Pacific said the property development segment, which accounted for 82 per cent of the firm's turnover, posted a 24 per cent drop in revenue in the second quarter to $63.8 million.
"The decrease was largely due to lower revenue recognition from Jade Residences and Whitehaven and absence of revenue recognition from LIV on Sophia, following the completion of these projects in the fourth quarter of 2016 and early 2017," it noted in a stock exchange filing.
The decrease was, however, partially offset by higher revenue recognition on construction progress of Trilive condo in Upper Serangoon Road.
Roxy-Pacific said its recent launches here and in Australia have done well: Straits Mansions in Singapore is fully sold, while Sydney projects such as The Hensley and Octavia sold 93 per cent and 95 per cent respectively.
Hotel ownership and property investment segments contributed to the remaining 18 per cent of the firm's revenue. Turnover for its hotel business in the second quarter was down slightly to $10.9 million from $11.9 million a year ago, owing to lower revenue per available room from Grand Mercure Singapore Roxy.
AT A GLANCE
REVENUE: $77.8 million (-21%)
NET PROFIT: $14.7 million (-26%)
INTERIM DIVIDEND: 0.214 cent per share (-57.5%)
Quarterly earnings per share shrank to 1.24 cents from 1.67 cents a year ago. Meanwhile, net asset value per share was 42.21 cents as at June 30, slightly higher than 41.20 cents at the end of December last year.
Net profit for the first half declined by 31 per cent to $20.7 million as revenue took a 29 per cent hit, falling to $143.2 million from $201.4 million in the same period last year.
Roxy-Pacific executive chairman and chief executive Teo Hong Lim said the group "exercised prudence and took the opportunity to invest" by replenishing its land bank at reasonable prices to protect its margins.
The counter closed 1 cent lower at 52.5 cents before the results were announced.