Iskandar Waterfront slips into the red in Q2

PETALING JAYA: Iskandar Waterfront City Bhd (IWC) made a second quarter net loss of RM477,000 for the quarter ended June 30 2014 compared to a net profit of RM5.4 milion for the corresponding period last year, on RM2.2 million lower revenue from the construction sector, other operating income and higher operating expenses more than halving profit from operations.
The group however saw its maiden contribution from its property development division of RM184,000.
Revenue for the quarter stood at RM63.2 million compared to RM65.2 million from a year ago.
"Whilst the group expects softer buying momentum for this year due to the measures announced by the government and the recent increase in the overnight policy rate, the group is confident and looks forward to 2014 with optimism especially in respect of property development activities, with prospective buyers expected to buy ahead of the goods and services tax (GST) implementation next year," IWC said.
It said the recently announced disposal of land and joint venture with Tropicana Corp Bhd group will allow the group to unlock the potential value of its landbank whilst continuing to enjoy the future upside from the joint venture development.
For the full six month period ended June 30 2014, the group made a net profit of RM1.5 million compared to RM5.56 million for the same period last year.
This was despite higher revenue at RM99.4 million compared to RM96 million.
The group's cash reserve however more than doubled for the six month period to RM55.8 million compared to RM27.5 million for the same period in 2013.