IGB Corp's 3Q profit lower on absence of disposal gain

KUALA LUMPUR (Nov 21): IGB Corp Bhd's net profit came in 58% lower year-on-year at RM62.62 million in its third quarter ended Sept 30, 2017 (3QFY17) from RM146.11 million, as the previous year had benefited from a one-off gain of RM136.2 million from the sale of a hotel in Myanmar.

Minus the effects of the one-off gain, IGB Corp’s operating profit for its latest quarter was down 13.3% y-o-y to RM118.7 million from RM136.9 million.

Revenue dropped 20.02% to RM259.71 million from RM324.71 million in 3QFY16, no thanks to lower contributions from its property development and hotel arms.

For its first nine months of FY17 (9MFY17), IGB Corp's net profit was almost flat at RM254.17 million compared with RM254 million a year ago. Pre-tax profit was down 15% on-year, said the company.

Cumulative 9MFY17 revenue fell 12% y-o-y to RM761.08 million from RM867.43 million, dragged by lower contribution from three core divisions namely, property development, hotel, and investments, mitigated by higher topline from both commercial and retail segments under its property investment division.

“Based on the results achieved for the nine months to Sept 30, 2017, the board is cautiously optimistic that the performance for the group for FY17 will be satisfactory,” it said.

Shares IGB Corp rose 3 sen or 1.05% in thin trading today, giving the property group a market capitalisation of RM3.93 billion. — theedgemarkets.com

For more stories, download EdgeProp.my pullout here for free.