KUALA LUMPUR: GuocoLand (Malaysia) Bhd has dropped even deeper into the red for the second financial quarter ended Dec 31, 2019 (2QFY20), due to lower sales of completed units and higher marketing costs.

It posted a widened loss of RM14.85 million compared with RM12.65 million for the previous corresponding quarter. Revenue was also 18.3% lower at RM90.19 million from RM110.42 million previously.

In a filing with Bursa Malaysia, GuocoLand said the lower revenue for 2QFY20 was due to lower sales of completed units. At the same time, selling and marketing expenses of RM4.9 million for the quarter were higher by RM1.3 million compared to RM3.6 million previously.

“This was due to the higher marketing cost incurred for Emerald Hills in the current quarter compared to the corresponding quarter of the preceding year,” it said.

For the first half of the financial year 2020, GuocoLand posted a loss of RM24.85 million, compared with RM13.87 million for the previous year, while revenue was down 26.4% to RM138.51 million from RM188.18 million.

For the rest of the financial year, GuocoLand said the domestic property market is expected to remain lacklustre due to the continued weak market and consumer sentiments.

“The overall momentum and prospects of the property market in the short term [are] expected to remain challenging. Moving forward, the Group will launch its projects according to prevailing market sentiments,” it said.

GuocoLand shares closed unchanged yesterday at 71 sen with a market capitalisation of RM497.33 million.