SINGAPORE (Oct 31): Roxy-Pacific Holdings’ 3Q18 earnings more than doubled to $4.4 million from its restated earnings of $1.6 million a year ago, as a result of significantly higher gross profit margins largely contributed by the group’s hotel ownership segment.

The bottomline growth came in spite of a 69% y-o-y dip in 3Q revenue to $18.8 million from a restated $60.25 million in the previous year.

This quarter’s revenue decline was due to lower contributions from Roxy’s property development segment, in the absence of revenue recognition from completed projects as well as lower recognition Trilive, which obtained its TOP in June this year.

The property investment segment, too, reported a decrease in revenue contributions following the sale of 59 Goulburn Street in Oct 2017.

Nonetheless, Roxy saw higher revenue contributions from its hotel ownership segment to $12 million as compared to $10.9 million a year ago, mainly due to the recognition of contributions from the recently acquired Noku Osaka property, as well as higher revenue from Noku Maldives after it fully commenced operations in Aug this year.

Due to the higher profit margin of the hotel ownership segment, overall gross profit margin doubled to 57% compared to 29% a year ago.

Roxy says it will continue to exercise prudence in new site acquisitions within Singapore as well as closely monitor market conditions for its planned property launches. It currently has seven development sites in Singapore as its land bank, of which it plans to launch one development site for sale in 4Q18 and another three development sites in 1Q19.

Meanwhile, the group is also intending to grow its presence and property investment portfolio within Australia.

Directors of Roxy are expecting the group to remain profitable in the current financial year.

The group says it continues to receive healthy recurring income from its portfolio of hotel assets in Singapore and Japan, adding that Noku Maldives’ counterpart in Phuket is targeted to open in 2019/2020.

Shares in Roxy closed 1.3% lower at 38 cents on Wednesday.