IOI PROPERTIES' Q1 NET PROFIT RISES TO RM192.11 MLN

KUALA LUMPUR, Nov 25 -- IOI Properties Group Bhd's net profit rose 17 per cent year-on-year (y-o-y) to RM192.11 million for the first quarter ended Sept 30, 2020, as the better performance of the property development business offset the weaker results of its other business segments.

The property development segment’s operating profit grew 31 per cent y-o-y to RM249.10 million during the quarter under review thanks to higher contributions from the Malaysia and China operations, the company said.

In contrast, the property investment segment’s operating profit shrank about 14 per cent y-o-y to RM47.06 million due to rental relief assistance extended to tenants amid the COVID-19 pandemic, while the hospitality and leisure segment swung to an operating loss of RM3.32 million from an operating profit of RM6.25 million a year earlier.

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In a filing with Bursa Malaysia today, the property developer also reported a higher revenue of RM659.67 million compared with RM540.32 million previously, mainly attributed to a better performance from the property development segment.

On the lower results of the leisure and hospitality business, the company said this was mainly due to a drop in occupancy rates and loss of revenue due to the imposition of the Movement Control Order to curb the pandemic.

Moving forward, IOI Properties expects the operating environment to remain challenging and uncertain. 

“Nonetheless, the group will continue with its prudent and professional management approach to ensure the delivery of satisfactory performances in the coming quarters whilst consolidating its market position and strengthening its competitive edge to seize any opportunity which may emerge when the situation improves,” it added.

-- BERNAMA