Superbowl Misses its Strike

bowling pins Superbowl Holdings Limited (SGX: S48), one of the largest owners and operators of bowling centers in Southeast Asia, saw its second quarter of 2013 (2Q 2012) revenue rise up by 8% to $4.6 million as compared to 2Q 2012.  The net profit, however, was bowled over by 74.4% to just $844,000 from $3.3 million in the previous year.

For the first-half year of 2013 (1H 2013), revenue was up 6% to $8.9 million and net profit was down 68.8% to $2.1 million. The revenue was mainly driven by higher contribution from a new bowling centre at SAFRA Toa Payoh, which commenced operations in October 2012 and an increase in rental from majority of tenancies for Superbowl’s properties.

Higher staff costs, finance costs, operating expenses and decrease in contributions from “share of results of associate and joint ventures” as compared to the previous year brought about the decrease in net profit.

As of 30 June 2013, the total bank borrowings increased to $24.6 million from $14.3 to provide financing for Superbowl joint ventures “in relation to the Group’s residential development project, Treasure on Balmoral, as well as its hotel/commercial project at Zhongshan Park.” The increased bank borrowings caused a rise in finance costs as mentioned above.

The cash flow from operations for 1H 2013 was at $691,000 while that in 1H 2012 was at $2.1 million. This is a decrease of 67.1%.

Superbowl has made its foray into the hospitality sector with the opening of Days Hotel Singapore at Zhongshan Park in Financial Year 2012. For 2Q 2013, the company also began operations for Zhongshan Mall and office tower. Furthermore, the company has successfully secured a lease at the HOMETEAMNS-JOM Clubhouse for the management and operation of a bowling centre there. It added that, “The Group’s joint venture residential development project, The Beverly is currently 93% sold. Meanwhile, the Group has launched its second joint-venture residential development project, Treasure on Balmoral.

No dividends were declared for this quarter. The shares closed at $0.52 on 12th August 2013.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.