PropNex's profit spiked 96.1% to $7.26m in Q2
Revenue also rose thanks to increased commission income from project marketing services.
Propnex has recorded a $7.26m profit attributable to shareholders in Q2, skyrocketing 96.1% YoY from $3.7m in Q2 2019, an announcement revealed. For H1, its profit surged 160.2% YoY to $14.84m from $5.7m in H1 2019.
Revenue likewise rose 15% YoY to $105.93m in Q2 from $92.09m, thanks to an increase in commission income from project marketing services of approximately $29.3m. It was driven by higher number of transactions completed in Q2 following the recovery of the private residential market from the property cooling measures of July 2018.
However, this was partially offset by decrease in commission income from agency services of approximately $15.4m due to initial impact of circuit breaker.
Cost of services also inched up 12.4% YoY from $83m in Q2 2019 to $93.3m in Q2. The increase in commission cost to salespersons was in tandem with the increase in commission income.
As a result, gross profit gross profit jumped 38.8%, from $9.1m in Q2 2019 to $12.6m in Q2. This was mainly attributed to the increase in revenue and notably increase in contribution from project marketing services which is a business segment with better gross margin as compared to agency services’ resale transactions.
Additionally, the board has declared an interim dividend of 1.5 cents apiece. The group’s balance sheet improved from $81.6m as at 31 December 2019 to $99.7m as at 30 June.