Asia-focused international conglomerate Swire saw revenue fall in the first half of 2016 as its property and airline businesses struggled with weak demand.
Swire’s revenue for the first half of the fiscal year ended June 30 came in at HK$30.075bn, down 5 per cent from a year prior and missing analyst estimates of HK$31.951bn.
Operating revenue for the period dropped 30 per cent to HK$7.26bn, while profit attributable to shareholders fell 37 per cent to HK$5.061bn. The group’s underlying profit in H1 totalled HK$3.55bn, down 27 per cent from a year prior.
Chairman John Slosar said underlying profits from real estate – which accounted for 80 per cent of group profits in H1 – had fallen due to a slide in the profitability of property transactions. He also noted softness at Swire’s flagship airline, Cathay Pacific, which on Wednesday announced an 82 per cent drop in first half profits.
Hong Kong-listed shares in Swire were down 0.6 per cent when trading resumed following the company’s release of results during the lunchtime trading break.
Get alerts on Front page when a new story is published