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PropNex reports lower Q2 earnings, declares 1.25 cents dividend

REAL estate agency PropNex saw its bottomline shrink in its fiscal second quarter, as it took in lower commission income while bearing higher staff costs and depreciation expenses.

Revenue for the three months ended June 30 fell 24 per cent to S$92.1 million from S$121.6 million the year before.

PropNex said this was due mainly to the decrease in commission income from agency services and project marketing services. Commission income from agency services decreased as the year-ago period saw much en bloc activity before the cooling measures took effect, which contributed to strong resale activities.

Commission income from project marketing services decreased because a significant number of option-to-purchase projects were not completed by the end of the quarter.

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Meanwhile, expenses such as staff costs and depreciation of plant and equipment increased during the period.

As such, PropNex's net profit attributable to shareholders fell 12 per cent to S$3.7 million from S$4.2 million.

Earnings per share were one cent, compared to 1.36 cents the year before.

The company has declared a dividend of 1.25 cents per share for the period. It did not pay out a dividend the year before.

PropNex shares ended one cent down at S$0.495 on Tuesday.