Roxy-Pacific 4Q18 net profit fell 27 percent on lower property development revenue

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Roxy-Pacific Holdings reported on Thursday its net profit for the fourth quarter fell 27 percent on-year to S$5.93 million on lower property development revenue, partly offset by higher contributions from the hotel segment.

Revenue for the quarter ended 31 December fell 29 percent on-year to S$30.83 million, it said in a filing to SGX after the market close on Thursday.

For the full year, Roxy-Pacific reported net profit fell 22 percent to S$23.87 million on revenue of S$132.86 million, down 46 percent on-year.

“Although Roxy-Pacific’s projects in Australia made good progress during the period, these projects can only recognize revenue upon completion and settlement, unlike its counterparts in Singapore and Malaysia,” the company said.

It added it would recognize revenue and profit of s$55.2 million and S$6.6 million, respectively, in January 2019 for the Hensley project.

Revenue from property development fell 46 percent in the fourth quarter to S$16.14 million, accounting for 53 percent of total revenue, it said. For the full year, the segment reported revenue fell 61 percent to S$75.0 million, mainly on lower revenue recognition from the Trilive project and on the absence of revenue from projects completed in 2017, it said.

Hotel ownership revenue increased 6 percent on-year in the fourth quarter to S$12.77 million, accounting for 41 percent of total revenue, the filing said. For the full year, the segment’s revenue increased 13 percent to S$50.0 million on higher contributions from Japan hotel Noku Osaka, which was acquired in October 2017, and Noku Maldives, which began full operation in August 2018, it said.

Property investment revenue increased 22 percent on-year to S$1.92 million in the quarter, accounting for 6 percent of total revenue, it said. But for the full year, the segment’s revenue fell 27 percent to S$7.9 million, mainly on the sale of the Sydney office building at 59 Goulburn Street in 2017, it said; those proceeds were used to acquire the NZI Centre in Auckland, New Zealand, in December 2017, it added.

Roxy-Pacific proposed a final dividend of 0.705 Singapore cent, bringing its total distribution for the year to 0.90 Singapore cent.

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