SINGAPORE (Feb 21): Roxy-Pacific announced that its 4Q18 earnings have declined by 27% to $5.93 million, compared to $8.14 million in 4Q17.

This brings FY18 earnings to $23.9 million, 22% lower than $30.5 million recorded in FY17.

Revenue for 4Q18 was 29% lower at $30.8 million from $43.3 million in the previous year, mainly due to lower contribution from the property development segment, partially offset by higher revenue from hotel ownership segment.

The group’s property development segment recorded a 46% y-o-y drop in revenue to $16.1 million, largely due to absence of revenue recognition from Trilive following its TOP in June 2018 and lower revenue from Straits Mansions following its TOP in Oct 2018.

The hotel ownership segment saw revenue increase by 6% y-o-y to $12.8 million, mainly due to contribution from Noku Osaka and higher revenue which was acquired in Oct 2017 from Noku Maldives after its full operation in Aug 2018.

Revenue from the group’s property investment segment was 22% higher y-o-y at $1.92 million, mainly due to higher revenue from NZI Centre.

Cost of sales dropped 42% y-o-y to $18.2 million, bringing gross profit to $12.6 million, 6% higher than $11.9 million a year ago.

Other operating income increased by 37% to $4.84 million, compared to $3.54 million last year, mainly due to higher fair value gain on investment property recorded for NZI Centre and Roxy Square.

Distribution and selling expenses increased by 45% y-o-y to $2.30 million, while administrative expenses was 35% higher at $3.84 million and other operating expenses grew by 93% to $7.99 million.

The group has proposed a final cash dividend of 0.705 cents per share.

Teo Hong Lim, executive chairman and CEO of Roxy-Pacific says, “We will continue to monitor market conditions closely for our planned upcoming four property launches, which are mainly freehold developments located in prime districts.”

“We will look out for high yielding investments to recycle our capital and enhance shareholder value. At the same time, we will strengthen our recurring income streams through our Hotel Ownership business, which continues on an upward trend in terms of contributions,” Teo adds.

Shares in Roxy-Pacific closed at 42 cents on Thursday.