Roxy-Pacific Holdings, the homegrown specialty property and hospitality group, today announced an 8% increase in revenue to $37.6 million for the third quarter ended September 30, 2009 (Q3FY2009). Net profit declined 28% to $6.3 million in Q3FY2009 from $8.7 million in Q3FY2008.
Excluding fair value gain of $2.3 million recorded in Q3FY2008, Group profit before tax increased 3% to $7.5 million from $7.3 million in Q3FY2008.
Roxy-Pacific says group revenue climbed 8% to $37.6 million in Q3FY2009 from $34.9 million in Q3FY2008. The improvement in turnover was a result of a 28% and a 38% increase in revenue from the group’s Property Development segment and Property Investment segment respectively. The increase in revenue was offset by a 28% decrease in revenue from the group’s Hotel Ownership segment compared to the previous corresponding period.
Revenue from the group’s Property Development segment rose 28% in Q3FY2009 to $28.2 million mainly due to progressive recognition of revenue from more development projects during the quarter under review. In all, the group recognised revenue from eight development projects in Q3FY2009 — The Montage, The Marque@Irrawaddy, The Azzuro, The Verte, The Adara, The Ambra and The Ambrosia and The Florentine. The group obtained Temporary Occupation Permit (TOP) for The Montage in July 2009. This segment accounted for 75% of total group revenue in Q3FY2009.
In line with overall hotel industry performance, the group’s Hotel Ownership division registered a 28% decline in revenue to $9 million in Q3FY2009. The decline was due to an overall decrease in Average Occupancy Rate (AOR) and Average Room Rate (ARR), at the Group’s Grand Mercure Roxy Hotel. AOR declined from 89.1% to 87.8% whilst ARR was 32% lower in Q3FY2009 at $137.7 as compared to S$203.6 in Q3FY2008. As a result, Revenue Per Available Room (RevPar) decreased 33% to $120.9 in Q3FY2009 from $181.4 in Q3FY2008.
Offsetting the poorer performance from the Hotel Ownership segment, revenue from the group’s Property Investment division jumped 38% during the quarter under review. This was mainly due to the recognition of rental from retail shop units at the Kovan Centre from September 2009, as well as overall increase in rental yield from the renewal of lease for some shop units at the group’s Roxy Square Shopping Centre. The group’s Hotel Ownership and Property Investment segment contributed to 25% of total group revenue in Q3FY2009.
Gross margin in Q3FY2009 decreased by five percentage points to 35%, mainly due to higher revenue contribution from the group’s Property Development segment which has a lower gross profit margin, as well as lower gross profit margin from its Hotel Ownership segment.
The group maintained a strong cash and cash equivalents position of $115.6 million as at September 30, 2009. Net gearing improved by 23% to 0.37 times as at September 30, 2009.
Source : The Edge – 11 Nov 2009