Higher taxes hurt I-Berhad profit
KUALA LUMPUR: Higher taxes incurred in 2017 have pushed I-Berhad’s net profit seven per cent lower to RM58.7 million for its financial year ended December 31 2018.
Group revenue dropped 18 per cent to RM375.1 million, said I-Berhad in a statement yesterday.
I-Berhad’s property development remained the biggest contributor last year, accounting for 96 per cent of total segmental results, said group executive chairman Tan Sri Lim Kim Hong in the statement yesterday.
“Five years ago, we embarked on a plan to establish a RM1 billion investment property portfolio to have a strong recurring income stream to balance the cyclical earnings from the property development segment.
“Last year was a transition year for this plan as the capital employed for the property investment segment is now significantly larger than that employed for the property development segment.
“For the past few years, much of the investment properties were still under construction and thus did not contribute to the bottom line of the group. The picture will be different from this year onwards,” he added.
First in line is the soft opening of Central i-City Mall on March 23 while the official opening is scheduled on April 27. It is expected to see positive impact on car park utilisation and demand for the commercial spaces at centralWalk in the coming years.
The new snowfall experience that was introduced last year for the SnoWalk attraction and the opening of the i-City Convention Centre are also expected to drive additional traffic to i-City.
On Selangor Menteri Besar Amirudin Shari’s recent comment on the potential of i-City’s status to be centre of Selangor’s golden triangle area, he said: “We believe i-City is well on its way to take the role, given the levels of economic opportunities on hand, with its blend of corporate, residential and leisure components.”
“While the property development market may continue to be challenging in the near term, given the overhang of unsold properties in the country, i-City’s longer-term value proposition will continue to set us apart.”
i-City is a 29.16ha freehold Ultrapolis located along the Federal Highway with direct flyover access.
It is certified as an MSC Malaysia cybercentre, a tourism destination and designated as an international park.