SINGAPORE (May 24): Eurosports Global, the purveyor of supercars and luxury watches, reported FY17 losses widened to nearly $8 million from $4.5 million a year ago in FY16.
Full-year revenue fell 17.5% to $52.4 million due to lower sales of supercars and watches.
Sales of supercars decreased by 22% to $44.39 million mainly due to weak market conditions. Twenty-four new Lamborghinis were sold in FY17 compared to 31 in FY16.
Sales of deLaCour watches fell 62.2% to $0.85 million which saw 60% fewer watches being sold compared to a year ago.
Revenue from the provision of aftersales services also saw a drop of 2.1% to $5.92 million is in line with lower car sales.
Meanwhile, Ultimate Drive Eurosports, the new subsidiary that rent out supercars to members and allow them to car-share, contributed $1.25 million to revenue.
Eurosports Global expects the next 12 months to remain challenging due to intense competition among automobile distributors in the mature but small Singapore market.
In addition, market demand could also be affected should the Singapore government impose policies that could adversely affect the affordability of automobile ownership, for example, increase vehicle registration fees and financing restrictions.
Shares of Eurosports Global closed at 24 cents on Wednesday.
