SINGAPORE (Oct 30): Roxy-Pacific announced earnings for 3Q17 dropped 82% to $1.5 million compared to $8.1 million the same period last year.
Revenue for the third quarter ended September also decreased 34% to $60.3 million from $90.9 million in 3Q16, mainly due to lower revenue from the Property Development and Hotel Ownership segments.
Revenue from the Property Development segment which contributed 77% of the group’s total revenue, decreased 39% to $46.5 million from $76.2 million in 3Q16.
This was largely due to lower revenue recognition from Jade Residences, Whitehaven, LIV on Wilkie and an absence of revenue recognition from LIV on Sophia following the completion of these projects in 4Q16 and early 2017.
However, the decrease was partially offset by higher revenue recognition on construction progress of Trilive.
Although the group has made good progress in the sales and construction of its projects in Australia, unlike in Singapore, it cannot progressively recognise the revenue as the completed contract method in accounting is adopted for these projects.
Meanwhile, the Hotel Ownership segment contributed 18% to the group’s total revenue and registered $10.9 million in revenue, a 5% decrease as compared to $11.5 million in 3Q16.
The decrease was mainly due to lower revenue per available room (RevPar) from the Grand Mercure Singapore Roxy hotel as a result of subdued corporate activity caused by continued global economic uncertainty in certain sectors such as the Offshore & Marine and pricing competition from new hotel supply.
The Property Investment segment contributed to the group’s total revenue $2.9 million, an 11% decrease compared to $3.2 million in 3Q16, accounting for the remaining 4%.
Other operating expenses doubled to $6.83 million compared to $3.27 million in 3Q16, mainly due to provision for fixed assets to be written off from the sale of Goulburn Street building.
Referring to Singapore’s outlook, the group looks forward to the upcoming launch of its 48-unit Navian freehold apartment development in Jalan Eunos and will continue to monitor the market closely to seize growth opportunities.
In Australia, the group’s latest project, West End Glebe – The Foundry, is expected to contribute positively to its profits upon its completion in 2019.
Furthermore, the group will continue to explore yield accretive opportunities to strengthen its income streams and enhance shareholder value.
Shares in Roxy-Pacific closed 58 cents on Monday.
