City Developments Ltd. suffers $32.1m loss for H1

The company points to a deferred tax credit of $17.6b as the factor for this loss.

City Developments Limited (CDL) announced today that they incurred a net loss of $32.1m for the first half of 2021.

The company attributed this to a deferred tax credit amounting to $17.6b, which was part of the New Zealand government’s COVID-19 business program.

The revenue went on an upward trend by 11.1%, settling at $1.2b. 

CDL also recorded positive growth in most of their sectors, with property development reaching an uptick of 35.5%. 

Meanwhile, with travel restrictions in place, the hotel operations segment saw a 10.8% decline in revenue. The investment properties division also yielded lower income, as the mall has been closed since Phuket had shut its borders. 

Despite the ongoing situation, the company reported that almost all business components are in positive territory, with the exception of its hotel operations section, which is predicted to improve by the end of 2021.

The group also registered a pre-tax profit of $9.7m, with higher financing costs, foreign exchange losses, and lower divestment gain seen as the primary culprit.