SINGAPORE (Aug 11): Metro Holdings has announced earnings of $25.4 million for 1Q18, which is more than double of the $9.8 million reported in 1Q17.
The stronger bottomline came on the back of a significant gain on disposal of the group’s interests, as well as better share of results of joint ventures (JVs).
Revenue for the quarter grew 1.7% to $32.4 million from $31.9 million in the previous year as the group’s retail topline improved by 1.9% to $30.8 million over the quarter, due to higher sales and stronger performance from its Indonesia associate.
On the property division front, topline revenue was mainly contributed by contributions from GIE Tower – which is 100% directly held by the group – which decreased marginally due to the weakening of the renminbi during the year.
Over the quarter, the group recorded a gain of $8.3 million on disposal of certain interests in a subsidiary and JV by its associate, Top Spring.
Share of results of joint ventures increased to $8.1 million from $6.5 million in 1Q17 due to a lower fair value loss on investment properties.
“We are pleased to start on a firm footing and remain committed to unlocking value at an opportune time. We will also explore strategic alliances to expand our property interests in China, our core market, where we enjoy a long and strong track record. Our present and past partnerships with reputable and experienced partners like Top Spring have continued to yield results,” says Metro’s chairman, Winston Choo.
“Looking beyond China, the Grade A office building, Acero Works at Sheffield, was completed in July 2017 and we look forward to the 571 freehold residential apartments being built under Phase 1 of the Middlewood Locks development in Manchester. UK’s fundamentals remain sound, and we will prudently explore opportunities for investments,” he adds.
Shares in Metro Holdings closed 1 cent lower at $1.12 on Friday.
