Paramount Q2 net profit 38% lower

PETALING JAYA: Paramount Corp Bhd saw a 38.6% drop in net profit to RM14.67 million for the second quarter (Q2) ended June 30, 2017 from RM23.91 million in the previous corresponding period, due to lower contribution from its education business and the absence of disposal gain.
Revenue, however, rose 27% to RM184.56 million from RM145.31 million, underpinned by higher sales of RM176 million for the quarter under review. Its six-month sales of RM420 million surpassed the full-year sales of RM402 million for 2016.
The property developer has proposed an interim dividend of 2.5 sen per share for the quarter under review.
Paramount said in a filing with the stock exchange that its property segment’s performance will be underpinned by the breadth of its product portfolio. Its unbilled sales as at June 30, 2017 were RM534 million, higher than the RM503 million it achieved as at March 31, 2017.
Paramount’s first-half net profit fell 31.7% to RM22.97 million from RM33.6 million, with revenue increasing 26.6% to RM327.5 million from RM258.64 million.
On the education front, it sees challenges ahead, particularly in the tertiary segment where competition is intense and highly price sensitive.Barring any unforeseen circumstances, the group is expected to deliver better results for 2017.
Paramount shares were unchanged at RM1.86 with 19,400 traded, giving it a market capitalisation of RM789.19 million.