IGB Q2 earnings at RM55.98m, boost from property, hotels (1597)

KUALA LUMPUR: IGB Corporation Bhd recorded an 18% increase in its earnings to RM55.98mil in the second quarter ended June 30, 2012 from RM47.46mil a year ago, as its revenue increased due to strong contributions from its property and hotel operations.

It said on Friday group revenue increased by 44% to RM260.83mil from RM180.97mil a year ago. Group pre-tax profit increased 34% to RM100.7mil from RM75.30mil. Earnings per share were 3.84 sen compared with 3.25 sen.

For the first half, the net profit increased by 31.4% to RM113.42mil from RM86.28mil a year ago. Its revenue rose 33.9% to RM483.72mil from RM361.04mil.

It said in the first half, property development and construction divisions' turnover both increased by more than 100%, whilst property investment and hotel divisions' turnover have increased by 9% and 39% respectively.

"In the property development division, Opt Ventures Sdn Bhd, a 70%-owned subsidiary launched a condominium development in Kuala Lumpur known as G Residence in February 2012. To-date more than 85% of the available 474 units of service apartments has been sold," it said.

IGB said in the property investment division, the group's two major retail malls, Mid Valley Megamall and The Gardens Mall registered turnover growth of 6% and 10% respectively whilst total rental income from the group's office buildings increased by 9%.

It said in the hotel division, total turnover achieved by its hotels including associates rose 7% to RM207.0mil.

Group pre-tax profit for the six months to June 30, 2012 improved 39% to RM200.3mil when compared to the same period in 2011.