Jakarta, (30/09) – The national property development, PT Intiland Development Tbk has managed to maintain the company’s revenue performance for the first semester of 2015. The financial audit as of June 30, 2015 shows Intiland booked a revenue of IDR 993 billion, an increase of 16 percent from the same period last year.
The company submitted its financial statement for the first half of the year on September 30, 2015. This is part of first-half financial audit ending on June 30, 2015.
Intiland’s executive director of Capital and Investment, Archied Noto said the rise in operating revenue was due to the sales. Several mixed and high-rise development projects have contributed to the company’s revenue.
“The sales from 1Park Avenue condominium and South Quarter apartment in Jakarta contributed much to the rise in the company’s performance during the first semester of the year,” Archied said.
Based on the project segment, mixed-use & high-rise projects are still the biggest contributors to the operating revenue. The segment contributed IDR 613 billion or 62 percent of the total revenue. Meanwhile, the esidential development segment contributed IDR 274 billion or 27 percent.
The rest, amounting to IDR 106 billion or 11 percent, came from investment property segment, notably office lease, warehousing, as well as golf and other sports facilities. Industrial Estate has not booked any contribution to the revenue yet. “The global economic turmoil has made the investors to opt for wait-and-see position. They’d prefer to put their investment plan on hold, awaiting positive signal before deciding on investing. This has become a global trend and has affected almost all industries,” Archied said further.
Based on the types of the revenue, development income contributed the most with IDR 887 billion or 89 percent of the total revenue. The rest came from recurring income, which reached IDR 106 billion of 11 percent.
Archied admitted that the property market throughout the year has been struggling. Property developers face the challenges of dwindling purchasing power. Even though Intiland managed to improve its operating revenue, the company’s profitability performance suffered a decline. As of June 30, 2015, Intiland reported a gross income of IDR 397 billion, or nine percent less than that in the same period last year (IDR 436 billion). The operating income reached IDR 143 billion and net profit reached IDR 130 billion.
Archied said the decline in profit was due to some factors. The lack of contribution from industrial estate segment and the increasing operational costs are the factors that put a pressure on the profit growth.
Nevertheless, the management remains optimistic in facing the tough challenges predicted to last until the end of 2015. The company has prepared several strategic plans to maintain growth trend. One of these is to launch several new projects in Jakarta and in Surabaya nearing the end of the year.
The company is also successful in the launch of two Graha Golf condominium towers in Surabaya. During the limited launch not long ago, the company sold out all of the units in the first tower, and sold 81 percent of the total units in Tower II.