KUALA LUMPUR (Aug 22): IGB Corp Bhd's net profit for second quarter ended June 30 (2QFY17) jumped 41% to RM76.3 million from RM54.1 million in the same period last year due mainly to higher contributions from its property investment and hotel divisions.

This is despite the group's quarterly revenue falling by 6% to RM246.6 million from RM262.5 million in 2QFY16 on lower hotel contribution.

The group announced an interim dividend of 5 sen per share in respect of its FY18.

In a filing with Bursa Malaysia, IGB Corp said the decreased revenue was mainly due to lower contribution from the hotel division after it sold of two hotels, namely Micasa Hotel Yangon and Renaissance Kuala Lumpur Hotel (Renaissance KL).

Meanwhile, its net profit for the first half jumped 81% to RM191.5 million from RM105.9 million — though revenue retreated 8% to RM501.4 million from RM542.7 million — thanks to a one-off gain of RM34.3 million from the sale of Renissance KL, and improved contributions from its property investment and hotel divisions.

The revenue decline, however, was due to the property development division's "significantly" weaker contribution as it had not launched any new projects in view of current weak sentiments. The division's topline shrank 36% to RM15 million.

Revenues from hotel and investment also declined, by 21% to RM144.2 million and 36% to RM20.3 million, respectively.

"Based on the results achieved for the six months to June 30, 2017, the board is cautiously optimistic that the performance for the group for FY17 will be satisfactory," it added.