Moneymax reports 3Q19 net profit more than tripled

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

Moneymax Financial Services reported Thursday its third quarter net profit more than tripled to S$3.07 million from S$947,000 in the year-ago period, mainly on increased revenue from retail and trading of luxury items, and pawnbroking.

Revenue for the quarter ended 30 September increased 48.8 percent on-year to S$52.86 million, the pawn-shop operator said in a filing to SGX.

Other gains jumped 72.4 percent on-year to S$350,000 on a foreign-exchange adjustment gain, the filing said.

Other expenses declined 59.8 percent to S$1.53 million from S$3.79 million in the year-ago period on changes to accounting for leases, Moneymax said.

Material costs increased 57.4 percent on-year to S$37.91 million on increased revenue from retail and trading of luxury items, the filing said.

For the nine-month period, Moneymax reported net profit increased 29.1 percent on-year to S$6.27 million, on revenue of S$138.51 million, up 29.2 percent.

Moneymax issued a cautious outlook.

“The industry continues to face challenges arising from uncertainties in the global environment, resulting in volatile gold prices and interest rates. As a result, we expect a lower consumer demand, and the following 12 months are expected to be challenging,” Moneymax said.

The pawn-shop operator said it would focus on launching new products and services to reach a wider group of customers.

For the full year, Moneymax said it expected to remain profitable.

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