SINGAPORE (Nov 6): AF Global posted earnings of $2.3 million for the 3Q ended September, from $982,000 a year ago.
AF Global is a JV between Aspial Corp and Fragrance Group which operates high-end hotels, resorts and serviced residences in Asia and the UK.
This was mainly due to share of results of joint venture companies in Xuzhou, China and the Knight Frank group of companies in Singapore, which trebled to $2.3 million in 3Q17, from $772,000 a year ago.
Revenue rose 2% to $13.9 million in 3Q17, from $13.6 million a year ago.
Revenue from its hotel and serviced residence segment grew marginally to $13.1 million in 3Q17, $0.2 million higher than a year ago.
The higher revenue of Crowne Plaza London Kensington was mainly attributed to higher average room rate, higher occupancies, and revenue from food and beverage. Holiday Inn Resort Phuket also saw higher revenue, mainly due to a stronger Thai baht.
Revenue from its leisure and others segment grew by $0.1 million to $0.8 million in 3Q17. This was mainly attributed to higher revenue from the group’s family entertainment business and higher interest income from investment securities during the quarter.
Meanwhile, no revenue was recorded from its property business in both 3Q17 and 3Q16.
As at end September, cash and cash equivalents stood at $22.5 million.
Looking ahead, the group says its hospitality assets are expected to provide stable income while it continues to focus on improving its business operations.
AF Global adds that it will conduct a strategic review on how to enhance the return on its assets.
The group has declared an interim dividend of 1 cent per share for the period. This is 20% lower than the interim dividend of 1.25 cents declared a year ago.
Shares of AF Global closed half a cent lower at 22.5 cents on Monday.
