SuperBowl profits up to $6.4 million on stable property rental and bowling earnings

Group was able to achieve a turnaround despite revenue drop from Funworld and Supercue.

Leisure and property investment group SuperBowl Holdings has reported a strong turnaround in full year net profit to $6.4 million on revenue of $15.6 million, compared to a loss of $1.6 million on revenue of $16.4 million a year ago. Earnings per share improved to 1.96 cents, from negative 0.49 cents in FY08.

For FY09, revenue from the property rental division was relatively stable, as was revenue from the bowling business, with each of these contributing about 40% to Group turnover. Revenue from Funworld amusement centres and Supercue outlets fell 11.9% and 15% respectively, following the closure of two of these outlets in August 2008.

For the fourth quarter ended 31 December 2009, the group achieved net profit of $1.4 million, compared to a loss of $0.6 million in the previous corresponding period. Revenue declined 9% to $4 million, from $4.4 million a year ago.

"We are pleased to have achieved a profit turnaround in spite of the challenging operating conditions of 2009. Our firm focus on cost management is certainly a key factor for our improved performance," Mr Teo Ho Beng, SuperBowl’s Group Managing Director, said.

In light of the group's good performance, the Board of Directors has proposed a first and final dividend of 0.25 cents per ordinary share.

On the back of the economic recovery in Singapore and the region, the Group is hopeful of a gradual pick-up in business activity in the ensuing 12 months.

"While the outlook for the leisure and recreation business is likely to remain muted, the property rental business should firm up on improved market sentiment. We are currently enjoying more than 95% occupancy for our investment properties," Mr Teo added.

The Group will continue to leverage its partnership with Hiap Hoe Limited to reap greater benefits from its foray into property development. Its joint-venture project, The Beverly, a private residential development at Toh Tuck Road, was launched in the first half of 2009, and is more than 70% sold. Maiden recognition of revenue for The Beverly should commence in the first half of 2010.

In January 2010, the Group, together with joint-venture partner Hiap Hoe, appointed Wyndham Hotel Management, Inc., an international hotel operator, to manage its two hotels located along Balestier Road / Ah Hood Road. The hotels will operate under the Ramada and Days Inn brand names, and are expected to be open for business in 2014.