KUALA LUMPUR (Aug 26): Iskandar Waterfront City Bhd's (IWCity) net loss widened by 45% year-on-year for the second quarter ended June 30, 2022 (2QFY22) on lower level of work and billings achieved for its property development business.
Its construction business was also weighed by higher material and operating costs, including administrative costs and finance costs, the property developer said in a stock exchange filing.
Net loss expanded to RM6.06 million or 0.66 sen per share for 2QFY22, from RM4.19 million or 0.47 sen per share a year ago, as revenue declined by 33% to RM6.64 million from RM9.88 million in 2QFY21.
For the cumulative first half ended June 30, 2022, net loss widened by 13% to RM11.25 million from RM9.97 million in the previous corresponding period, while revenue contracted by 36% to 11.21 million from RM17.42 million.
Although Malaysia's economy is expected to gradually recover following the reopening of international borders, the group, which is 35%-controlled by executive vice chairman Tan Sri Lim Kang Hoo, said business outlook for the property sector remains tough due to inflation pressures and rising costs of building materials.
As such, the group said its performance for FY22 would remain challenging.
"Despite the challenging outlook, the group will continue to monitor the market situation whilst adopting [a] prudent approach for any new products' launches, and shall unlock the value of its land bank whenever an opportunity arises," it added.
Shares of IWCity closed unchanged at 32 sen per share on Friday (Aug 26), giving it a market capitalisation of RM294.76 million.