KUALA LUMPUR: Broking and property concern TA Enterprise Bhd (TAE) recorded a 54% drop in net profit to RM17.59 million in its third quarter ended Oct 31, 2009 (3QFY10) from RM38.23 million a year earlier, due to a fall in property development revenue. Revenue fell 16.6% to RM118.23 million from RM141.72 million, while pre-tax profit shrank 54.6% to RM23.25 million from RM51.21 million. Basic earnings per share (EPS) contracted to 1.03 sen from 2.68 sen. No interim dividend was declared.

On a quarter-on-quarter comparison, TAE group's pre-tax profit decreased 45.3% from RM42.5 million in the preceding second quarter due to lower broking and property development revenue, lower gains on disposals of investments and higher provision for doubtful debts and impairment losses on investments.

For the nine months to Sept 30, 2009, net profit slipped 31.4% to RM79.89 million from RM116.53 million a year earlier on the back of a 26.4% drop in revenue to RM312.84 million. EPS declined to 5.11 sen from 8.16 sen. TAE said today although brokerage income and gain on disposal of investments were higher in 3QFY10, the group recorded a drop in revenue made in property development as compared to previous year's corresponding period.

It said the reduction in pre-tax profit was however cushioned by the lower net provision for doubtful debts and impairment losses on investments. According to its notes accompanying its quarterly financial statements, property development sales fell to RM67.3 million from RM229.8 million a year earlier.

TAE said the current economic statistics showed that the economy seemed to be on the path of recovery.

"The relatively low interest rate prevailing in the market should support the economic growth and boost the activities of the financial market. However, the newly imposed RPGT of 5% on gain on disposal of properties may impede the growth of the properties sector," it said.