Recurring Income Dominating Largest Portion of Revenues
PWON secured 3Q19’s revenues of IDR1.7 trillion slightly sliding by 6.3% from IDR1.8 trillion in 3Q18 as recurring income contributed IDR955 billion to PWON’s 3Q19 revenues. That contribution accounted for 55% of 3Q19’s total revenues and showed a 5.8% gain from IDR902 billion in 3Q18. The development income, unlike recurring income, posted a 17.8% decrease from 3Q18 and contributed only 45% of 3Q19’s revenues, whereas recurring income derived from space rental, service charges, and service apartment dominated the largest portion of revenues. PWON in long-term timeframe targets both recurring income and development income to share equal contribution proportion (i.e. 50:50) to revenues.
Sales Target Nudges Up
PWON targeted 2019’s marketing sales of IDR2.2 trillion or nudging up 0.77% from 2018’s marketing sales. Its 3Q19 marketing sales performance was mediocre, achieving only 46% of the 2019’s target. Based on the revenue breakdown, Jakarta’s projects accounted for 39.6% of 9M19’s total revenues, while Surabaya’s projects contributed larger by 60.4% to 9M19’s total revenues. In fact, recurring income generated by mixed-used condominium projects built in PWON’s shopping centers were strong footing for 2019’s revenues.
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