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Jakarta Post

Lippo Karawaci profit down 54 percent in Q1

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, May 3, 2017   /   07:30 am
Lippo Karawaci profit down 54 percent in Q1 Lippo Karawaci mall in Tangerang, Banten (Courtesy of/lippokarawaci.co.id)

Publicly listed company PT Lippo Karawaci (LPKR) has announced a 54 percent decrease in its net profit in the first quarter of 2017 to Rp 143 billion (US$10.74 million) from the figure in the same period of 2016.

Meanwhile, its total revenue saw a 2 percent decrease to Rp 2.5 trillion.

LPKR president director Ketut Budi Wijaya said the property market was relatively weak in the first quarter as people remained reluctant to buy property due to the ongoing tax amnesty and regional elections.

“However, our business model with its balanced property development and recurring revenues have sustained overall revenue of the company, of which our recurring revenue is mainly supported by organic growth in the healthcare division,” Ketut said in a statement.

(Read also: Lippo Group launches its first REIT in Indonesia)

Development revenue decreased 28 percent to Rp 712 billion, accounting for 28 percent of total revenue, while revenue from the urban development division fell 47 percent to Rp 392 billion.

Revenue from the large-scale integrated division increased 31 percent to Rp 319 billion.  Meanwhile, recurring revenue grew 13 percent to Rp 1.8 trillion, contributing 72 percent to total revenue, playing a crucial role in balancing out the weak property business.

Revenue from the healthcare division grew 13 percent to Rp 1.4 trillion. The group owns Siloam Hospitals, which operates 25 hospitals.

LPKR's commercial division revenue increased 22 percent to Rp 183 billion mainly due to a 57 percent increase in mall revenue to Rp 97 billion. Meanwhile, hotel revenue remained steady at Rp 86 billion. (bbn)