SINGAPORE (Nov 13): Amara Holdings reported a 20% decline in 3Q17 earnings to $3.2 million from $4 million in the same period a year ago, on higher costs incurred over the quarter ended Sept.
Revenue for the quarter grew 12% to $22.2 million from $19.8 million previously, mainly due to higher revenue contributions from the group’s Hotel Investment and Management segment and Property Investment and Development segment.
The group’s bottomline was however dragged down by higher staff costs for the quarter which notably grew to $7 million, up 19% from $5.8 million in 3Q16 due to an increase in start-up costs of a new hotel and timing difference arising from the recognition of service points into salaries.
The group also reported a near-doubling in cost of properties sold/consumables used to $3 million compared to $1.6 million a year ago, due to higher consumables used in Hotel Investment and Management segment, as well as the progressive recognition of development costs from Property Investment and Development segment.
Finance costs for the quarter increased by 50% to $1.8 million from $1.2 million in 3Q16 as a result of higher loan draw-down due to ongoing development in construction.
In its outlook, Amara says it expects the hospitality sector to remain competitive, with increased room inventory amidst an uncertain global economic outlook.
Shares in Amara closed 0.9% lower at 56 cents per share.
