By Kate O’Keeffe
Of Dow Jones Newswires
HONG KONG (Dow Jones)–Shun Tak Holdings Ltd said Monday its net profit fell 70% last year as performance at its property, transport and investment divisions suffered.
The Hong Kong-listed company is run by Managing Director Pansy Ho, a daughter of Macau casino kingpin Stanley Ho, who made headlines earlier this year as the ailing tycoon’s family members battled for control of his fortune. In March, a settlement was announced increasing the financial interest of Angela Leong, whom Ho calls his fourth wife, in Ho’s casino company. Daughter Pansy, born to the woman Ho calls his second wife, had been fighting to increase her control over his assets.
Shun Tak said its net profit for the 12 months ended Dec. 31 was HK$853.3 million (US$109.4 million), down from HK$2.87 billion in 2009.
Revenue rose 0.9% to HK$3.20 billion from HK$3.17 billion.
Underlying net profit excluding a revaluation surplus fell 58% to HK$459 million from HK$1.10 billion in 2009.
Profit at the group’s property division fell 27% to HK$256 million in 2010 because of a lack of extraordinary income or large project completions. However, the company said it was optimistic for a “busy year ahead,” as it plans to launch sales for several large-scale residential developments including Nova City Phase 4 in Macau and the Chatham Garden Redevelopment Project in Hong Kong in the second half of the year.
The company said despite the “considerable revival in global travel demand,” yield per passenger at its transport division, which encompasses the group’s TurboJET ferry business, suffered due to fierce price cuts from competitors and high fuel cost. The division posted a loss of HK$26 million compared to a profit of HK$28 million in 2009.
Shun Tak’s investment division swung to a loss of HK$46 million last year from a HK$22 million profit in 2009, partly because of a lack of dividend income from Sociedade de Turismo e Diversões de Macau, S.A. Shun Tak owns an 11.5% effective stake in STDM, which owns approximately 55.7% of Ho’s casino company SJM Holdings Ltd.
Shun Tak’s hospitality division was the lone bright spot, swinging to an operating profit of HK$22 million versus a loss of HK$37 million in 2009 as regional tourism rebounded in tandem with the global economic recovery.
The company recommended a final dividend of HK$0.06, down from HK$0.187 in 2009.
