AMARA Holdings on Thursday reported a first-quarter net profit of S$28.5 million, up from S$3.7 million a year ago, buoyed by the share of results of a jointly-controlled entity from a development project which contributed S$27.7 million, net of tax.
Earnings per share for the first three months of the year was 4.95 Singapore cents, up from 0.64 cent a year ago.
Revenue in Q1 was down 14 per cent to S$20.4 million, due to absence of development property sold in Q1 2016.
Other income for the quarter decreased by 54 per cent to S$0.4 million, due to absence of foreign exchange gain.
Cost of properties sold or consumables used decreased by 68 per cent year on year to S$1.6 million, due to the absence of development property sold in Q1 2016.
Depreciation charge for Q1 rose 37 per cent to S$1.4 million, due to additions of property, plant and equipment.
Higher interest rates on loans and higher loan drawdown caused finance costs for the quarter to go up 64 per cent to S$2 million.
Other expenses for the quarter rose 22 per cent to S$8.5 million, mainly due to foreign exchange loss partially offset against lower operational cost.
The integrated lifestyle group said in its outlook that the hospitality scene remains challenging with the uncertain global economic climate and the increased supply of inventory coming on stream in 2016.
"According to Singapore Tourism Board, they are forecasting 0-3 per cent growth in visitor arrivals and they intend to invest S$700 million over the next five years to boost tourism. We remain cautiously optimistic about the performance of our properties."