In a statement to the Stock Exchange of Thailand, property developer Sansiri reported Q1 revenue of THB5.5 billion – up some 6 percent on the same period last year – however sales from its core property sales business were down some 15 percent year-on-year.
The increase in total revenue, it reported, was driven by the increase in other revenues consisting of gain from sales of property to the property fund amounting THB768 million, and gains from the sale of land amounting to THB304 million. However revenue from project sales, the company’s core revenue, decreased by 15 percent compared to Q1 2013.
In Q1 2014, Sansiri and its subsidiaries reported net profit of THB830 million, a significant increase from net loss of THB86 million Q 1 2013 due to an increase in total revenue and a decrease in operating expenses.
During the first three months of the year, Sansiri and its subsidiaries reported declining revenue from project sales in every product type. Revenue from sales of single detached houses contributed 46 percent if revenue while revenue from condominiums accounted for 45 percent.
Interestingly the company highlighted higher costs for English language classes, which were now being outsourced to the British Council.
“The continual political unrest situation in Thailand which negatively affected the overall economy and consumers’ confidence, has led to the revision of Sansiri’s business plan with fewer launches of two new projects in Q1 2014, compared to 17 new projects launched in Q1 2013,” it reported.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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If you have a news story or comment for publication about Thailand property or real estate please email andrew@propertyguru.com.sg