PropNex posts 42% rise in 3Q earnings to $7.2 mil on higher sales
SINGAPORE (Nov 14): PropNex says that its 3Q18 earnings have increased by 41.6% to $7.21 million, compared to $5.09 million in 3Q17.
This brings 9M18 earnings to $17.6 million, 47.2% higher than $11.9 million in 9M17.
Revenue for the quarter was 26.0% higher at $124.2 million from $98.5 million last year, mainly due to the increase in commission income from agency services and the increase in commission income from project marketing services.
The increase in commission income from both services were the result of the group’s growth in the sales force and improved salespersons’ productivity.
Finance income surged to $267,000 from $32,000 a year ago, mainly due to an increase in overall fixed deposit and bank balances from net IPO proceeds.
Other income increased 15.8% y-o-y to $756,000, due to an increase in referral fee income, an increase in sponsorship income and an increase in training and seminar income.
As at end Sept, the group’s cash and cash equivalents stood at $76.1 million.
Year to date, the group has been involved in 29 project launches.
On the outlook, the group expects demand for private residential market in 2019 to be similar to 2018, mainly attributable to the demand from en bloc owners who have collected their proceeds and are on the continued search for replacement homes.
Ismail Gafoor, co-founder, executive chairman and CEO of PropNex, says, “Importantly, we remain confident in our growth strategies and intend to maintain a strong leadership position in our real estate brokerage services.”
As at 11.47am, shares in PropNex are trading 1.5cents or 2.75% higher at 56 cents.
