IPGA posts 33% wider 2010 loss

Real estate website operator IPGA (ASX:IPP) reported a 2010 net loss of $2.5m, as a result of the costs of investing in its core Asian operators

Real estate website operator, IPGA Limited (ASX:IPP), widened its 2010 losses 33 per cent to $2.5 million, despite an 80 per cent increase in revenue, on costs incurred in growing the business.

Revenue grew to $7.27 million during the year, and had grown 51 per cent in the second half of the year over the first half, the company's annual report shows.

But the loss widened due to investments in growing IPGA's businesses in its core markets of Singapore, Malaysia and Hong Kong.

In local currency IPGA's Malaysian business swung to profitability and grew by 124 per cent, its Singapore business grew 70 per cent and Hong Kong by 77 per cent.

The company also registered strong traffic gains across its portfolio of sites.

But the strong Australian dollar limited the benefits to IPGA's bottom line.

In a note to shareholders, CEO Shaun Di Gregorio said despite the wider loss IPGA is in a stronger position now than it was 12 months ago.

In its statement on the report, auditor Deloitte said there is “significant uncertainty” whether IPGA will be able to continue as a going concern.

But its said the directors are confident of its ability to do so due to achieving organic growth from operations, and raising $2.5 million from a rights issue and $2.5 million from a placement in 2010.

IPGA shares stayed flat on Thursday at $0.540.

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Tags businesslossreal estateIPGA Limited

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