Paramount 3Q net profit down 81%

This article first appeared in The Edge Financial Daily, on November 22, 2018.
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KUALA LUMPUR: Paramount Corp Bhd’s net profit for the third quarter ended Sept 30, 2018 (3QFY18) shrank by 81% to RM15.62 million from RM82.82 million a year ago despite higher revenue, as the previous year had recognised a disposal gain from the sale of its Sri KDU campus.

In a filing to Bursa Malaysia, Paramount said its revenue grew by 12% year-on-year (y-o-y) to RM210.53 million from RM187.84 million on higher contribution from the property division.

For the nine months ended Sept 30 (9MFY18), net profit declined by 41% y-o-y to RM64.88 million from RM109.56 million, though revenue grew 24% to RM651.14 million from RM524.35 million as both property and education segments’ contributions strengthened.

Excluding the disposal gains recorded in 2QFY18 and the year-ago quarter, the group’s 9MFY18 pre-tax profit would be RM64.4 million (9MFY17: RM67.8 million) on a revenue of RM559 million (9MFY17: RM524.3 million).

The group achieved sales of RM787 million in 9MFY18, and is aiming for RM1 billion sales for FY18, backed by RM1.2 billion worth of new property launches.

Its unbilled sales stood at RM920 million as at end-September. It is confident of a better operating performance for FY18.