Berjaya Land’s fourth quarter revenue up 5%

Berjaya Land’s fourth quarter revenue up 5%

PETALING JAYA, 28 June: Berjaya Land Bhd’s (BLand) revenue for the fourth quarter ended April 30, 2016 rose 5.08% to RM1.70 billion from RM1.62 billion a year ago due to higher contribution from the property development and investment business and foreign hotels.

In a filing with Bursa Malaysia yesterday, it said the property development and investment business saw the completion of sales of several parcels of vacant land while foreign hotels enjoyed a favourable effect from the foreign exchange translation to ringgit despite reporting overall lower occupancy rates and average room rates.

In addition, the BToto Group saw higher revenue contribution from H.R. Owen Plc (HRO) due to additional sales outlets and introduction of new models by car manufacturers. HRO’s results also benefited from the favourable effect of foreign exchange translation.

“The abovementioned had mitigated the lower revenue contributed by BToto’s principal subsidiary, Sports Toto Malaysia Sdn Bhd, mainly due to the full three-month Goods and Services Tax (GST) effect in the current quarter as compared with only one-month GST effect in the previous year and the impact of increasing illegal gaming activities,” said BLand.

However, pre-tax loss widened to RM434.47 million during the quarter from RM321.92 million a year ago mainly due to impairment losses incurred.

The impairment losses include RM373.3 million goodwill in respect of the Malaysian gaming operations which continued to be affected by the challenging economy and regulatory environment, amortisation of gaming rights in respect of the Philippine gaming operations amounting to RM28.3 million, investments in associate companies amounting to RM28.7 million, and impairment in value of asset held for sale amounting to RM131.8 million.

The group incurred impairment losses of property, plant and equipment amounting to RM16.3 million and investments amounting to RM9.1 million.

“The higher profit from operations has partly mitigated the aforesaid impairment losses. In spite of that, the group incurred a higher pre-tax loss for the current quarter under review as compared to the previous year corresponding quarter,” it said.

For the financial year ended April 30, 2016 (FY16), revenue rose 6.39% to RM6.29 billion from RM5.91 billion a year ago while pre-tax profit fell 60.18% to RM10.07 million from RM25.28 million a year ago.

The group expects operating performance to remain challenging in FY17. It expects the gaming business to be challenging on the back of dampened domestic consumer spending, impact of GST and increasing illegal gaming activities.

 

— THE SUN

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