Landmarks first-quarter net loss narrows on higher revenue

KUALA LUMPUR (May 19): Landmarks Bhd, a 30.3% associate of Genting Bhd, narrowed its net loss to RM3.35 million or 0.7 sen loss per share in the first quarter ended March 31, 2017 (1QFY17), from RM6.59 million or 1.37 sen loss per share a year ago, on improved performance of its hospitality and wellness, and resort and destination development divisions.

Quarterly revenue rose 12.5% to RM26.91 million in 1QFY17, from RM23.92 million in 1QFY16.

In a filing with Bursa Malaysia yesterday, Landmarks said its hospitality and wellness division, represented by The Andaman in Langkawi, recorded an 8.8% increase in operating profit to RM7.5 million in 1QFY17, from RM6.9 million a year ago, on higher occupancy which grew by 4.3% and a 6.8% rise in the average room rate.

The resort and destination development division, which comprises Treasure Bay Bintan in Bintan, Indonesia, managed to reduce its operating losses by 21.4% to RM8.8 million, from RM11.2 million in 1QFY16, mainly due to better revenue performance and lower overheads in the current quarter under review.

On prospects, Landmarks said the outlook for the hospitality business remains robust, and it expects The Andaman to increase its revenue contribution for 2017.

“The construction of an additional 60 tents for The Canopi in Chill Cove is now completed. The total key count now is at 100 tents, and the board expects The Canopi to increase its revenue contribution to the group starting May 2017.

“The group will be launching its sales of the luxury villa residences at Chiva-Som Bintan in the second quarter of this year, and the board expects the sales to contribute significantly to the group’s revenue and profits in [the] current financial year,” it added.

This article first appeared in The Edge Financial Daily, on May 19, 2017.

For more stories, download TheEdgeProperty.com pullout here for free.