Courts Asia's 2Q revenues disappoint on lower Malaysian sales

Revenue fell 3% to $180m.

Courts Asia's earnings in 2Q2017 were S$6.7m (+11.3% y-o-y), thanks to better than expected opex and gross margins even though revenue was below expectations, said DBS Vickers Securities.

At $180,m revenue was 3% lower than YoY. Operating profit likewise declined by 13% to S$13m but is above DBS Vickers Securities' expectation with a much improved performance from Singapore.

According to the research house, the drop in revenue is led by lower cash sales in Malaysia.

Overall Malaysian sales declined by 12% y-o-y to S$57m led mainly by lower cash sales. Same-store-salesgrowth (SSSG) was a negative13% y-o-y. Malaysia’s Credit and earned service charges remained healthy, growing by 4.5%.

Singapore sales grew by 1% y-o-y (SSSG +2.3%) while Indonesia sales increased from S$3m to S$5m during the quarter.