Tropicana 2Q net loss widens on lower progress billings across key projects in KL, southern region

• Quarterly revenue, however, grew 8.44% to RM211.43 million from RM194.98 million a year ago as its property investments, and recreation and resort operations improved after borders reopened in April.

KUALA LUMPUR (Aug 25): Tropicana Corp Bhd's net loss for the second quarter ended June 30, 2022 (2QFY22) widened to RM61.55 million from RM25.05 million a year ago, due to lower progress billings across key projects in the Klang Valley and southern region as most of its projects were in the early to mid stages of construction.

Loss per share was 3.74 sen from 1.72 sen previously, its Bursa Malaysia filing on Thursday (Aug 25) showed.

It did not declare any dividend for the quarter under review.

Quarterly revenue, however, grew 8.44% to RM211.43 million from RM194.98 million a year ago as its property investments, and recreation and resort operations improved after borders reopened in April.

For the cumulative first half ended June 30, 2022, Tropicana's net loss expanded to RM94.95 million from a net loss of RM22.7 million previously as revenue marginally slipped to RM434.73 million from RM435.51 million.

Amid the current challenging economic environment, Tropicana believes that demand for properties in the group's established, mature and developing townships will persist with attractive pricing and various promotional packages.

Premised on the expected demand, the property developer noted it will continue to launch its properties in strategic locations across the Klang Valley, Genting Highlands, northern and southern regions.

Moving forward, Tropicana will also continue to launch new phases in its established development sites, namely Tropicana Aman, Tropicana Metropark and Tropicana Danga Cove.

"The group will continue to leverage on its various sales initiatives and marketing campaigns to secure more sales and therefore remain positive and confident on the long-term prospects of its property development business.

"In addition, the group will continue to develop and market its properties located in various strategic locations, which are expected to contribute positively to the future earnings of Tropicana," it said.

Tropicana shares closed up one sen or 0.84% to RM1.20, giving the group a market capitalisation of RM2.4 billion.