Commercial-property developer the Platinum Group has reported a new high in financial results for the third quarter of 2017.
The company recorded net profits of Bt569 million, with annual revenues expected to reach Bt2 billion as a result of improved efficiency in the management of both current and new projects.
The results further contribute to a positive outlook for the company’s financial performance in the final quarter of the year.
President Chanchai Phansopha said the firm achieved total Q3 revenues of Bt1.51 billion, up 10 per cent from the same period last year, and net profits of Bt569 million, up 9 per cent.
He credited the increases primarily to growth in rental and services income, which rose 14 per cent.
Meanwhile, growth in revenues from food and beverages and hotel operations accounted for 12 per cent and 6 per cent, respectively. The company’s core business had a gross profit margin of 62 per cent.
The surge in rental and services income was due to the increase of the rental fee of the Platinum Fashion Mall, Chanchai said.
The company also renovated its rental space on the first floor by adding a zone for men’s and women’s clothing and devoting the sixth floor to cosmetics, mobile accessories and Thai souvenirs for tourists.
In addition, the company entered into a lease agreement with the Platinum Fashion Mall juristic person on June 1, 2016, to rent the common area and advertising area – both of which have been effectively utilised and managed, to bolster revenues.
The company also enjoyed incremental revenues from sponsors, which rented space in the building to engage in promotional campaigns.
The company has meanwhile received outstanding feedback from customers regarding its new Talad Neon-Down Town Night Market on Soi Phetchaburi 23-29.
As a result, the facility’s operating hours were extended beginning on October 1 to 4pm to midnight daily.
Major renovations conducted on November 1 included changes to the floor plan and layout of more than 800 shops and the addition of a 1,500-square-metre event space.
The primary objective was to offer a greater variety of stores, which are set out in various zones to facilitate shopping. Stores in the Container Zone are differentiated by colour, for instance, and there are now more green areas where customers can relax and eat.
The number of tourists visiting the Platinum Fashion Mall increased by 15 per cent in 2017 and by 12 per cent in Q3, resulting in a surge in food court revenues.
Novotel Bangkok Platinum Pratunam Hotel attained an occupancy rate of 90 per cent in Q3, further boosting revenues. This is credited mainly to an upsurge in MICE customers, who generally spend more on accommodation.
The company offered these guests room-upgrades with attractive packages. As a result, revenues from hotel operations rose by 6 per cent over the same period last year.
The Market Bangkok is under construction, a 200,000-square-metre retail hub integrating Thai and Western styles. It’s a Bt5.8-billion investment and covers 20 rai.
Structural and decorative work are being performed simultaneously. The project is expected to open at the end of 2018, with the sales office opening in mid-January.
On Koh Samui, the Holiday Inn Express and Holiday Inn Resort, with 202 and 127 rooms respectively, are undergoing Environmental Impact Assessments and are expected to be completed in Q3 2020.
Chanchai said the company’s financial performance in the last quarter of 2017 is expected to grow continually and there is high confidence that it will be the highest growth rate thus far, following the same pattern as in previous years.
That expectation is supported by the fact that Q4 is the peak season for tourism. The Platinum Group has prepared a variety of activities and promotions for valued customers as a gift to welcome the New Year.