Isetan narrows losses in Q2 FY16

ISETAN'S net loss in the second quarter ended June 30 shrank to S$3.52 million, from a net loss of S$5.85 million in the year-ago period, the group said in a Singapore Exchange filing on Friday evening.

The reduction in loss was attributed to an increase in rental revenue from the Isetan Orchard investment property and reductions in expenses; the latter includes reductions in rental expense, depreciation expense, employee compensation, supplies, utilities and repair and maintenance.

For the three months ended June 30, revenue slid 4 per cent to S$68.61 million from the previous year.

Sales revenue was affected by poorer sales at certain stores, Isetan said. The operations at Isetan Katong was affected for a few days in May as a result of a fire at one of the units in Parkway Parade mall. However, rental revenue from the Isetan Orchard investment property increased as more tenants started their tenancies in Q2 FY16, and this mitigated the decrease in retail sales revenue.

Q2 loss per share came down to 8.54 Singapore cents, from a loss per share of 14.17 Singapore cents in the previous year.

The counter last closed at S$3.51.