Lippo Karawaci's Net Income Soars in H1 2018
Jakarta. Lippo Karawaci had a stellar financial performance in the first six months of this year, thanks to its health care and urban development divisions.
The property developer booked first-half net income of Rp 1.1 trillion ($72 million), which represents a 135 percent year-on-year increase, while revenue rose 13 percent to Rp 5.6 trillion.
Lippo Karawaci president director Ketut Budi Wijaya said global uncertainty that stems from a trade war between the United States and China, higher interest rates, and rupiah volatility have been affecting consumer purchasing power this year.
"The company's performance reflects our focus on operational efficiency amid a sluggish property market. We remain optimistic about Indonesia's long-term property market fundamentals and remain focused on the company's sustainable value creation in the years ahead," Ketut said in a statement on Wednesday.
Lippo Karawaci's profit increase mainly came from the deconsolidation of Mahkota Sentosa Utama, after the developer sold its majority stake in the subsidiary to Cyprus-based Hasdeen Holdings for Rp 2.35 trillion.
Lippo Karawaci's recurring income – from malls, hotels and hospitals – grew 12 percent to Rp 3.7 trillion, which contributed 67 percent of the company's total first-half revenue this year.
The company recorded revenue of Rp 2.8 trillion from its health care division in the first six months, thanks to revenues from its eight main hospitals and 10 new facilities that have opened since last year.
Revenue from the residential and urban development division rose 17 percent to Rp 1.8 trillion, mainly driven by the urban development section, which increased 49 percent to Rp 1.4 trillion.
Meanwhile, revenue from its commercial division, which comprises retail malls and hotels, rose only 3 percent to Rp 376 billion due to an 8 percent decline to Rp 177 billion in revenue from its retail malls.
Revenue from the company's hotels rose 16 percent to Rp 199 billion in the first half, while it also recorded 9 percent higher revenue of Rp 522 billion from its asset management division.
The Jakarta Globe is affiliated with the Lippo Group.
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