SINGAPORE (May 9): Aspial Corp reported a 40% drop in 1Q19 earnings to $4.6 million, or 0.24 cents per share, from $7.6 million a year ago.
Group revenue for 1Q19 was 19% lower at $173.8 million compared with $213.4 for the corresponding period in 2018.
Revenue from its real estate business declined 26.3% to $98.5 million in 1Q19 from $133.7 million in 1Q18.
The decrease was primarily due the lower sales from Avant and CityGate projects which were completed in 2018. Although the Australia 108 project contributed the bulk of the revenue for 1Q 2019, the higher contribution was not able to offset the lower sales from Avant and CityGate projects.
Revenue from the financial service business decreased 13.5% to $46.6 million in 1Q19. The decrease was due to lower sales from the retailing and trading of jewellery and branded merchandise.
The jewellery business recorded a drop in revenue of $0.8 million or 2.6% in 1Q19 due to lower revenue on the absence of sales from the Citigems brand which was sold away in April 2018.
In its outlook statement, Aspial says it will continue to sell the remaining commercial units in its CityGate project in Singapore.
In Australia, the group says the real estate business is expected to contribute significantly to the group’s revenue and profitability in FY19 and FY20 as the group has locked in about $520 million of unbilled contracts from Australia 108.
In addition, the group expects profit margin of the subsequent phases of Australia 108 project to be higher than the earlier ones as the average sales per square metre rate for higher floors are better than those for the lower ones.
Shares in Aspial closed flat at 18 cents on Thursday before the results announcement.
