Toll road operator China Merchants Holdings (Pacific) today announced a net profit after tax of HK$100.8 million ($17.8 million) for the first quarter ended 31 March 2010, up 60% from the corresponding period last year.

The group posted a revenue of HK$27.2 million in the first quarter, comparable to that achieved a year ago. The property development and others business segment, which accounted for 89% of the total group revenue, registered a drop of 8% as a result of slower sales in the latter part of 2009.

For the first quarter, toll revenue from Guiliu Expressway surged by 66.5% although profit contribution declined by 18.2% as the group’s profit/cash sharing entitlement was reduced from 90% to 40% with effect from 1 January 2010 and the receipt of subsidy had ceased from the same date under the JV agreement.

Toll revenue and profit contribution from Guihuang Highway decreased 11.6% and 13.5% respectively affected by traffic diversion from competing roads.

Toll revenue from Yuyao Highway registered an increase of 34.8% while profit contribution increased 53.4% after the relocation of a toll station and the change of toll rate structure at this station.

China Merchants says the property development and others business segment as a whole posted a lower pre- tax loss of HK$4.2 million compared to a pre-tax loss of HK$7.8 million registered for the same quarter last year. The better performance was due mainly to higher profit from sales of development properties, higher foreign exchange gain and lower operating and interest expenses.