SINGAPORE (May 7): AF Global reported 1Q18 earnings declined by 45% to $1.56 million, compared to $2.84 million in 1Q17.
Revenue for the quarter came in at $16.3 million, 11% higher than $14.7 million last year, bringing 1Q18 gross profit to $8.49 million, 12% higher y-o-y.
This was mainly attributed to an increase in revenue from both Holiday Inn Resort Phuket and Crowne Plaza London Kensington, due to higher occupancy and average room rates. Stronger Thai Baht and Sterling Pound had also contributed to the increase.
Other operating income fell 77% to $30,000, compared to $129,000 last year.
Other operating expenses increased by 26% to $1.63 million from $1.29 million a year ago.
Share of results of associated and joint venture companies dropped 28% to $1.85 million compared to $2.57 million in the previous year.
As at Mar 31, the group’s cash and cash equivalents stood at $25.2 million.
On the outlook, the global economic outlook in 2018 is expected to be positive and the group expects its hospitality assets to provide stable income.
In an SGX filing on Monday, AF Global says, “We will continue to focus on improving the value of our hospitality assets with sustainable growth strategies.”
Shares in AF Global closed at 20 cents on Monday.