An increase in the number of visitors to Sunway's theme parks helped to boost the earnings of its property investment business.
KUALA LUMPUR: Sunway Bhd recorded an 8% increase in third-quarter (Q3) earnings to RM143.6mil from a year earlier due to better performance from four of its five main business segments, the exception being quarry.
The group, which achieved the better bottom-line on a 20% higher revenue of RM1.14bil, told Bursa Malaysia that the pre-tax profit of the property development business grew 62% to RM62.2mil in the quarter ended Sept 30 due to higher progress billings from local projects and other property projects in Singapore.
The property investment segment’s profit, meanwhile, rose 23% to RM45.9mil as better occupancy in investment properties and an increase in theme park visitors boosted revenue.
The construction segment posted a 34% jump in pre-tax profit to RM32.2mil partly due to higher progress billings from local projects. Meanwhile, the trading and manufacturing segment more than doubled its profit (+109%) to RM7.3mil thanks mainly to the full contribution from the Winstar group acquired in September 2015.
However, the pre-tax profit of the quarry segment fell 36% to RM6.7mil, hit by the drop in seling prices of both agggregates and premix.
For the nine-month period ended, Sunway’s earnings fell 23% to RM400.07mil on a 10.1% jump in revenue to RM3.36bil. Sunway attributed the reduced profit to lower fair value gains recorded by Sunway Real Estate Investment Trust which was about RM87.1mil lower compared to the previous period.
Property investment, construction and quarry operations reported lower pre-tax profit for the cumulative Jan-Sept period. However, the biggest drag on profit was property investment due to the lower fair value gains from revaluation of Sunway REIT properties in the current year.
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