KOP narrows Q3 losses to S$513,000 on 33.6% revenue rise

CATALIST-LISTED hotel and resort developer KOP narrowed its losses in the third quarter on higher revenue from both the hospitality and real estate management services segments, according to unaudited results on Thursday.

Net loss for the three months to Dec 31, 2019 shrank to S$513,000 from S$3.29 million before, as revenue increased by 33.6 per cent to S$6.28 million.

The improvement in real estate origination and management services turnover was attributed to consultancy income recognised in the period, while KOP pointed to the better performance of Montigo Resorts in both Nongsa and Seminyak for the rise in hospitality revenue.

For the nine months, KOP notched a net profit of S$30,000 against the previous year's loss of S$5.48 million, as revenue grew 21.5 per cent to S$16.9 million.

The group's earnings per share was 0.02 Singapore cent for the nine months, compared with an earlier loss per share of 0.47 cent, while net asset value stood at 11.68 Singapore cents a share, compared with 12.13 cents as at March 31, 2019.

With KOP operating in Singapore, China and Indonesia, the group noted that its hospitality segment faced "elevated" market risks from the blow that the Covid-19 outbreak is dealing to the travel and tourism sectors.

It also flagged that "progress will inevitably be slow" for its Wintastar integrated resort in Shanghai, while the outbreak will prompt a search for "alternative sale and marketing efforts" when it launches the joint-venture luxury condominium Dalvey Haus in Singapore this quarter.

No dividend was recommended, unchanged from the year before, as the board said that "the company has deemed it more appropriate to retain the cash in the group for its future growth".

KOP shares added half a Singapore cent or 11.36 per cent to S$0.049 on Thursday before the results were announced.