SINGAPORE (Feb 10): Yoma Strategic reported earnings of $0.3 million for 3QFY17, a 98.7% drop from the earnings of $25.2 million in 3Q16 on lower fair value gain after disposing a partial stake in its telco towers business.
In 3Q16, Yoma recorded a fair value gain of $27.7 million on its 25% investment in edotco Investments Singapore and subsequently reduced its stake to 12.5% that led to a gain on
disposal of $3.43 million in 3Q17.
In the quarter to December, revenue rose 16.6% to $27.7 million on the back of higher sales of residences and land development rights as the group started to recognise the revenue from the share of profits on sales of StarCity Zone C.
Real estate rental and services revenue fell from $4.84 million to $4.76 million, owing to the fewer numbers of tenants in FMI Centre.
The group recorded higher revenue from its automotive and equipment business segment, which rose 17.6% to $10.2 million, largely coming from Convenience Prosperity which trades New Holland tractors. Its vehicle leasing business, Yoma Fleet, also recorded an increase in revenue from $1.1 million to $1.6 million.
At its consumer business, the group’s KFC stores recorded an increase in revenue from $1.4 million to $3 million due to the opening of four additional stores.
Net other income fell 57.5% to $12.9 million, owing to lower fair value gains at its telecommunications towers investment.
Administrative expenses rose 4.6% to $11.8 million while finance expenses rose from $1 million to $11.8 million from the strengthening of the USD.
The group also recorded a share of losses of associated companies of $0.03 million, compared with the share of earnings of $1.9 million in the previous corresponding quarter, due to the reduced share of profits at Access Myanmar Distribution, which produces and markets bottled water, alcoholic beverages and other fast moving consumer goods.
Yoma’s executive chairman Serge Pun said he remains confident about Myanmar’s recovery and long term growth prospects and added that it will continue to innovate to offer products that suit the market and its needs.
The group did not declare any dividends for the current financial period.
Shares in Yoma closed at 61 cents on Thursday.
