SUNWAY BERHAD’S REVENUE JUMPS 20.2%

Sunway Berhad records revenue of RM1,308.4 million and profit before tax of RM160.9 million for the current quarter ended 31 March 2018 compared to revenue of RM1,088.8 million and profit before tax of RM151.6 million in the corresponding quarter of the previous financial year, representing a steady start for the Group.

The revenue in the current quarter was 20.2% higher due to higher contribution from all business segments, except property development. Profit before tax increased 6.1% mainly due to higher contribution from the property investment segment.

Chong Chang Choong, Sunway Berhad’s Chief Financial Officer says, “Our strong balance sheet and diversified portfolio puts us in a good position to capitalise on any opportunities which may arise. Barring any unforeseen circumstances, the Group is confident that it will continue to perform better in the next quarter.”

The property development segment posted a revenue of RM132.3 million and profit before tax of RM23.8 million in the current quarter compared to revenue of RM140.7 million and profit before tax of RM28.4 million in the corresponding quarter of the previous financial year, representing a decrease in revenue of 6.0% and profit before tax of 16.2%. Performance in the current quarter was lower mainly due to lower sales and progress billings from local development projects.

The property investment segment reported revenue of RM220.0 million and profit before tax of RM55.6 million in the current quarter compared to revenue of RM186.9 million and profit before tax of RM39.6 million in the corresponding quarter of the previous financial year, representing an increase in revenue of 17.7% and profit before tax of 40.6%.

The higher revenue in the current quarter was mainly due to higher contribution from Sunway Pyramid Hotel, which was operating at full inventory following its refurbishment exercise in 2016, and additional contribution from the new Sunway Velocity Hotel, which began operations in September 2017.

Revenue was also higher due to improvement in revenue contribution from Sunway Velocity Mall and the Group’s theme parks. The profit before tax was higher mainly due to better performance registered by Sunway Velocity Mall as compared to the initial period, as well as better contribution from the other operations in the current quarter.

The construction segment recorded revenue of RM443.7 million and profit before tax of RM40.1 million in the current quarter compared to revenue of RM316.8 million and profit before tax of RM40.5 million in the corresponding quarter of the previous financial year, representing an increase in revenue of 40.0% and decrease in profit before tax of 0.8%. Revenue in the current quarter was higher mainly due to higher progress billings from local construction projects and lower intra-group eliminations. The construction outstanding order book stands at RM 6.1 billion as at 31 March 2018.

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