GuocoLand's Q2 profits plummeted 84% to $10.85m

It was hit by lower sales of completed condo units.

GuocoLand suffered from an 84% YoY decrease in its Q2 profits to $10.85m from $66m in the same period a year ago, an announcement revealed. The firm’s revenue also crashed 61% to $142.95m from $370.56m a year ago.

According to GuocoLand, the lower revenue was dragged by the higher progressive revenue recognition in Q1 as Sims Urban Oasis obtained its Temporary Occupation Permit in 2017.

Also read: GuocoLand profits plummeted 85% to $26.1m in Q1

“Lower sales of completed residential units were substantially brought down its inventory of completed unsold units in the past quarters also contributed to the drop in revenue,” it explained.

Meanwhile, in line with lower sales activities, administrative expenses fell by 28% to $19.6 m.

“The group has a balanced pipeline of mixed-use, commercial and residential projects, including the integrated mixed-use development Guoco Midtown which had its groundbreaking in November 2018,” it also noted.