IGB Corp’s Q3 earnings rise 37.6%

IGB Corp owns 50% in IGB Real Estate Investment Trust, which owns Mid Valley Megamall.

KUALA LUMPUR: Property developer IGB Corp Bhd boosted its third-quarter earnings by 37.6% year-on-year to RM45.09mil mainly due to higher contributions from the retail property investment and hotel divisions.

This was despite a 5.3% drop in revenue for the quarter ended Sept 30 to RM274.49mil from RM289.76mil a year earlier due to lower contributions from the property development and investment divisions.

In its interim unaudited results announcement to Bursa Malaysia, the Mid Valley City (KL) developer said for the nine-month period to Sept 30, its earnings rose 4.3% to RM165.59mil while revenue inched up 0.7% to RM880.67mil.

The biggest revenue contributor remained retail property investment at about 40%, followed by the hotel and property development segments.

The retail property investment division saw revenue increasing 5% to RM351.68mil while the property development division’s revenue also rose by 5% to RM141.03mil.

However, results achieved by the hotel division during the first nine months of 2015 was below expectations.

It said all local hotels in the group recorded lower average occupancy rates when compared to 2014.

Moreover, Pangkor Island Beach Resort which contributed RM9.9mil in the first six months of 2014 was closed in July 2014 for redevelopment.

As a result, the hotel segment’s revenue contribution dipped by 7% to RM251.34mil during the first nine months of 2015 against the same period last year.

IGB did not declare any dividend for the quarter under review.

IGB shares lost 3 sen to close at RM2.37 on Wednesday.