FMI reports strong revenue, profit growth

YANGON — First Myanmar Investment on Wednesday reported a large increase in revenue in the first half of 2016-17 on the back of a strong performance by subsidiary Yoma Bank.

FMI, which in March became the first company to list on the Yangon Stock Exchange, reported revenue of K74.63 billion in the six months to September 30, a 49.4 percent increase on the K49.96 billion recorded during the first half of 2015-16.

Financial services contributed the bulk of revenue, at K67.46 billion, followed by healthcare services with K7.15 billion.

The increased revenue and streamlined operations contributed to a net profit of K6.2 billion, a 51.8 percent increase on the same period last year, the company said.

FMI’s executive chairman Mr Serge Pun said in a statement that he was “very pleased” with the result. “The strong performance of Yoma Bank and Pun Hlaing Siloam Hospitals underscores the importance of our ‘three pillar’ strategy of investing in the financial services, real estate and healthcare sectors. We look forward to continued performance during the latter half of the fiscal year,” he said.

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FMI said a growing loan book and increased market share pushed Yoma Bank’s interest income higher by 64.6 percent, while fee income also increased 37.5 percent on the same period last year.

Pun Hlaing Siloam Hospital’s revenue also rose 25.1 percent on the back of increased inpatient occupancy and higher service income, particularly a 48.3 percent increase in revenues from the radiology, diagnostic and ultrasound departments.

FMI owns 51 percent of Yoma Bank and 60 percent of Pun Hlaing Siloam Hospital, in Hlaing Tharyar Township.

However, FMI’s share of before-tax profit from associates plummeted, from a profit of K457.26 million in the first half of 2015-16 to a loss of K118.12 million in 2016-17. Chindwin Holdings, the operator of Balloons over Bagan, contributed a K415.96 million loss, but this was partially offset by a solid performance Meeyahta International Hotel, the operator of FMI Centre in downtown Yangon, which contributed K281.948 million.

Thanlyin Estate Development, which has historically been FMI’s most important associate, “continued to record slow sales due to an overall cool real estate market”, FMI said. It contributed just K72.83 million.

FMI holds 30 percent of Chindwin Holdings, 20 percent of Meeyahta International Hotel and 30 percent of Thanlyin Estate Development.

FMI shares closed unchanged at K16,000 on November 29.

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