Real estate, finance services businesses boost Aspial's Q3 earnings

MAINBOARD-LISTED Aspial Corporation's net profit for the third quarter surged to S$12.72 million from S$1.88 million a year ago on higher revenue contributions from its real estate and finance services businesses.

Group revenue for the three months ended Sept 30 rose 27 per cent to S$170.92 million.

Nine-month profit more than doubled to S$9.38 million from S$4.41 million on a 33 per cent increase in revenue to S$450.79 million.

The group's real estate business revenue surged 57.2 per cent to S$235.9 million from S$150.1 million on progress recognition of sales from three projects, CityGate, The Hillford and Waterfront@Faber, and the final recognition of sales from Urban Vista.

Nine-month revenue from its financial services business rose 29.6 per cent to S$117.3 million on higher interest income and sales from retailing and trading of pre-owned jewellery and watches.

Bucking the trend is a decrease in the revenue from its jewellery business to S$95.2 million from S$96.4 million.

For the first nine months, Aspial recorded higher pre-tax profits from both its real estate and financial services that more than offset a pre-tax loss from its jewellery business.

The listed group said the loss from its jewellery business was mainly due to lower gross profit as gold sales had contributed to a larger percentage of its revenue.

Higher branding or marketing and interest costs have also outweighed decreases in its operating expenses that stem from the on-going rationalisation of retail network, it said.

In addition to higher contributions from its three businesses, Aspial also posted a 170 per cent increase in other income to S$10.51 million, helped by fair value gain for an investment property and foreign exchange gain.