MoneyMax reports 4Q18 net loss on lower retail revenue, higher expenses

MoneyMax outlet in Singapore’s Little India neighborhood; taken October 2018.MoneyMax outlet in Singapore’s Little India neighborhood; taken October 2018.

Pawnbroker MoneyMax Financial Services reported on Friday a fourth quarter net loss of S$360,000, swinging from a year-earlier net profit of S$2.28 million on lower retail revenue and higher expenses.

Revenue for the quarter ended 31 December fell 9.2 percent on-year to S$39.27 million, it said in a filing to SGX after the market close on Friday.

“This was due mainly to decrease in revenue in the retail and trading of pre-owned items segment, partially offset by an increase in revenue from the pawn broking segment,” MoneyMax said.

Other gains fell 68.9 percent on-year to S$304,000 in the quarter, mainly on the absence of fair value gains on investment in other financial assets and year-earlier foreign exchange gains on the strengthening of the Malaysian ringgit, the pawnbroker said.

Other expenses increased 17.5 percent on-year to S$4.46 million in the quarter, mainly on higher rental expenses for outlets, professional fees and licensing fees for new outlets, it said.

Employee benefits expenses rose 2.1 percent on-year to S$4.42 million in the fourth quarter, mainly on annual salary increments and increased headcount from expanding operations in Singapore and Malaysia, it said.

For the full year, MoneyMax reported net profit fell 34.5 percent on-year to S$4.50 million on revenue of S$146.51 million, down 6.3 percent on-year.

In its outlook, MoneyMax was cautious.

“Singapore’s economy is projected to expand at a slower pace in 2019 due to economic uncertainties arising from global headwinds of the U.S. China trade war, Brexit as well as China’s slowing economy. Consumer sentiment is expected to remain weak,” it said. “Together with rising wages as well as the impending interest rate hikes, these are expected to pose challenges to the group’s business particularly the retail
and trading business segments.”

It didn’t propose a dividend for the fourth quarter, compared with a 0.5 Singapore cent dividend a year earlier.

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