“The group expects this unbilled sales to translate into higher revenue for the second-half of the year."

PETALING JAYA: I-Bhd’s net profit for its second quarter ended June 30 dropped 56% to RM8.52mil from RM19.41mil in the previous corresponding period, while revenue fell to RM52.73mil from RM70.65mil a year earlier.

In a filing with Bursa Malaysia, the master developer of i-City said the drop in earnings was due to the lower contribution from the property development segment. “Although there is more revenue recognition due to more projects being developed this year, the profits are lower, as the property products that were developed in 2014 had better margins than the current property products.”

For the six-month period, net profit dropped to RM18.75mil from RM25.51mil in the previous corresponding period, while revenue increased to RM128.07mil from RM115.56mil a year ago.

The company said the group had sold 50% more property than in the first-half of 2014, resulting in unbilled sales growing to RM580mil as at the end of June compared with unbilled sales of RM418mil as of end-June 2014. “The group expects this unbilled sales to translate into higher revenue for the second-half of the year.”

I-Bhd deputy chairman Datuk Eu Hong Chew (pic) said the company expected revenue to continue to grow in the second-half of this year and in the next few years, as some of the ongoing property development projects are still at the initial stage of construction.