Petaling Jaya, 23 May 2018:Paramount Corporation Berhad (PCB) today announced its first quarter results, posting a revenue of RM162.2 million and a Profit Before Tax (PBT) of RM18.0 million. Compared with 1Q2017, revenue for the period increased by 13% (1Q2017:RM144.1 million as reinstated due to new accounting standard), while PBT increased by 3% (1Q2017: RM17.5 million). This is a result of higher revenue contributions by the education division, offsetting lower revenue from the property division.
Paramount’s Group Chief Executive Officer, Jeffrey Chew said “Our education arm turned in a satisfactory set of results despite unabated stiff competition in the education industry. Being one of the largest education providers, we will maintain our focus on delivering quality education at different price point to suit diverse needs and affordability all the way from pre-school, K-12 to tertiary.”/p>
Paramount Education, comprising Sri KDU, R.E.A.L and the KDU tertiary businesses recorded a 74% increase in revenue at RM70.8 million for 1Q2018 (1Q2017: RM40.8 million). This increase is mainly attributed to consolidation of the R.E.A.L Education Group which contributed RM27 million. This is coupled with higher new student enrolment at KDU University College and KDU Penang University College. The division also recorded an improved PBT from RM6.9 million in 1Q2017 to RM12.7 million in 1Q2018 due to R.E.A.L’s PBT contribution of RM4.9m as well as higher PBT from Sri KDU and lower Loss Before Tax (LBT) incurred by KDU University College.
The Group’s property business however recorded a decrease in revenue by 11% with RM91.4 million (1Q2017: RM103.2 million) due to lower level of construction activities coupled with the completion of certain phases within the high-end Sejati Residences comprising semi-detached and superlink, properties in Cyberjaya and Utropolis Glemmarie’s serviced apartments in Shah Alam in 2017. Hence the PBT for the division also decreased by 34% to RM8.7million (1Q2017: RM13.1million).
Nevertheless, Chew remains positive on the property front with Paramount Property’s current line-up of property developments including [email protected] 13 in Petaling Jaya, an integrated development with serviced apartments which include senior friendly living features, corporate offices, and retail components; Berkeley Uptown a 33.3-acre integrated development located at Jalan Goh Hock Huat, Klang, anchored by Sri KDU International School and [email protected] at Salak Perdana, Sepang.
He added that the property sentiment is positive, and the market growth has remained slow and steady, driven by mid-affluent home sectors as evidenced by Paramount Property’s strong lock in sales in FY2017 from launches such as Utropolis Batu Kawan at Glenmarie and Greenwoods Salak Perdana. Paramount Property will continue to maintain its successful formula of offering a breadth of products at different price points and different locations to suit the needs of the market.