KUALA LUMPUR: I-Berhad's net profit increased to RM5.4 million in the second quarter ended June 30, 2024 (Q2 2024), compared with RM1.8 million in the same quarter last year.
Revenue for the quarter was up 32.7 per cent to RM55.5 million against RM41.8 million a year ago.
In the first six months, the property developer posted a net profit of RM9.5 million, up 282 per cent from RM2.5 million, while revenue grew 11.4 per cent to RM96.2 million against RM86.3 million last year.
In a statement, the company said that this upswing is largely attributed to a significant increase in earnings in the company's leisure and hospitality segment.
New attractions such as the Digital Sports Arena, Immersive Winterland, and Race Karting drove significant visitor traffic to i-City, especially during school holidays.
The property investment segment also showed significant improvement, highlighting the company's successful management and optimisation strategies in this area.
The effective implementation of these strategies led to successful rental of investment properties held by the group, mainly the Grade A GBI premium office tower Mercu Maybank, car parks, and data center in i-City.
Additionally, the share of results from an associate, Central i-City Mall, which is Thailand's first mall in Malaysia, contributed positively, it said.
I-Berhad, which has unbilled sales of RM90 million as of June 2024, sees continued robust demand for its properties in i-City.
"This solid foundation, combined with our strategic initiatives and market insights, positions I-Bhd well for continued growth and success.
"Looking forward, we remain committed to our vision of making i-City a symbol of innovation, quality, and success. By exceeding expectations and setting new standards of excellence in urban development, we are confident in our ability to create lasting value for our stakeholders and ensure a prosperous future for i-City," it said.
Meanwhile, the company announced a motion to strengthen its financial position through a fundraising exercise to raise RM100 million via the issuance of redeemable preference shares (RPS) with a 3.0 per cent dividend rate, fully subscribed by its major shareholder Tan Sri Lim Kim Hong.
The company said the RPS issuance demonstrates strong confidence and financial backing by Lim and will not dilute existing shareholders' interests since the RPS are not convertible into ordinary shares, preserving shareholder value while raising the necessary capital.
The flexibility to issue the RPS in multiple tranches over three years allows I-Berhad to align its funding requirements with project timelines and cash flow needs, providing significant financial flexibility and certainty, the company noted.
According to PublicInvest, the issuance of these securities is an "inexpensive way to raise funds, a welcome move considering its non-dilutive effects." The research firm added that the RM55 million net proceeds from this exercise are sufficient for ongoing development works and working capital needs, although RM45 million will be utilised to repay previous advances by its major shareholder.