ONE-OFF gain from a recently recognised associate bumped Metro Holdings from an operating loss into a doubling of net profit in the second fiscal quarter.
Metro said net earnings for the three months ended Sept 30 surged 100.4 per cent to S$61.2 million, or 7.4 Singapore cents per share, as it enjoyed an initial gain of S$59.3 million from Hong Kong-listed developer Top Spring.
That gain was a transitional negative goodwill that represented the excess of Metro's share of the fair value of Top Spring's net identifiable assets over the purchase consideration.
The Top Spring boost helped to lift Metro from a S$14.6 million operating loss that was largely due to a S$10.3 million unrecognised impairment charge from a decline in the fair value of Metro's Shui On Land investment. The company had a year-ago operating profit of S$25.7 million.
Metro said sentiment for the Singapore residential property market remains cautious. The retail business faces challenges in terms of competition and rising operating costs in Singapore and Indonesia. Refurbishment costs for Metro City is expected to hit profitability, although overall rental income of the property division is seen to remain steady.
Metro shares closed at 87 Singapore cents on Tuesday, lower by 0.6 per cent or half a cent, before the results were announced.