IGB Corp sees 41% profit jump in 2Q

KUALA LUMPUR (Aug 23): IGB Corp Bhd’s net profit for its second quarter ended June 30, 2017 (2QFY17) jumped 41% year-on-year to RM76.3 million from RM54.1 million, due mainly to higher contributions from its property investment and hotel divisions.

The better earnings came despite a 6% dip in quarterly revenue from last year’s RM262.5 million to RM246.6 million, on lower hotel contribution after it sold off two hotels, its Bursa Malaysia filing showed. The group announced an interim dividend of five sen per share in respect of FY17, payable on Sept 21.

Its net profit for the first half jumped 81% to RM191.5 million from RM105.9 million — though revenue retreated 8% to RM501.4 million from RM542.7 million — thanks to a one-off gain of RM34.3 million from the sale of Renaissance Kuala Lumpur Hotel, and improved contributions from its property investment and hotel divisions.

The revenue fall was due to the property development division’s weaker contribution as it had not launched any new projects because of weak sentiments.

The division’s top line shrank 36% to RM15 million. Revenues from hotel and investment also declined, by 21% to RM144.2 million and 36% to RM20.3 million, respectively. IGB’s board expects its FY17 will be “satisfactory”.

This article first appeared in The Edge Financial Daily, on Aug 23, 2017.

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