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LCD Global swings to profitability in Q2 on strong results from associates, JVs
NOTWITHSTANDING a dip in revenue, LCD Global Investments swung to profitability in the second quarter ended Dec 31, 2014, thanks to sterling performance by its associates and joint venture companies.
The hospitality player recorded a net profit of S$9.98 million in the second quarter, up from a net loss of S$209,000 in the year-ago period. But revenue slipped 6 per cent to S$13.97 million during the quarter due to weaker performance at its serviced residence in Vientiane, Laos and the closure of three entertainment outlets in Singapore.
Its share of results of associated and joint venture companies surged to S$10.68 million during the quarter, up from S$632,000 in the same quarter in 2013.
The significant increase was mainly attributable to its joint venture company in Xuzhou in China, which obtained approval to hand over the apartment units of Phase I of its residential development to the buyers on Nov 7, 2014 and recognised profits for 463 apartments.
LCD's share of results of Knight Frank Pte Ltd and its subsidiaries during the quarter, however, was lower than the year-ago period mainly because of a drop in commission income as fewer transactions were closed by its industrial property and international property market divisions during the quarter.