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Yoma Strategic Q3 net profit surges 49.8% to S$7.8m on currency gains

An artist's impression of Star City in Thanlyin, in Yangon’s south-east, by Yoma Strategic Holdings.

THANKS mainly to currency translation gains, Yoma Strategic Holdings Ltd said on Monday that its net profit for its third quarter ended Dec 31, 2014 surged 49.8 per cent year on year to S$7.8 million, causing its net profit for the first nine months of the fiscal year to more than double to S$19.9 million from S$9.5 million in the year-ago period.

Revenue for the third quarter fell 17.2 per cent to S$25 million due to the lower revenue recognition from Star City. This was partially mitigated by stronger sales recorded in Pun Hlaing Golf Estate (PHGE), rental income from PHGE and Star City, as well as higher contributions from its non-real estate businesses.

Yoma's chief executive Andrew Rickards said that he expects revenue from Star City to improve in the next quarter as the group recognises the fees for managing the construction of Star City Zone C.

"Positive momentum from our non-real estate segment is expected to continue in the next quarter driven by another robust peak season of our Balloons Over Bagan tourism business, as well as the completion of more telecommunication towers," he added.

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In the third quarter, revenue from Yoma's "Balloons Over Bagan" tourism business accounted for 13.8 per cent of its revenue and recorded a 67.8 per cent year-on-year jump to S$3.4 million on the back of the growing tourism market in Myanmar.

Yoma also announced on Monday that its one-for-three rights issue is 46 per cent over-subscribed. With each new rights share priced at 38 cents, the rights issue has raised some S$164.4 million.

The net proceeds of S$163.9 million will be used to purchase the Landmark Development site, additional LDRs (land development rights) in Pun Hlaing Golf Estate and the New Holland Tractor business, it said.

The 432.5 million rights shares are expected to be issued on Monday and listed and quoted on the SGX mainboard with effect from Tuesday morning.