KUALA LUMPUR (March 23): Berjaya Land Bhd (BLand) posted a net profit of RM33.77 million for its financial quarter ended Jan 31, 2017 (3QFY2017), against RM21.02 million in net loss in the same period the year before.
It attributes the improved earnings to higher profit contributions from its property development and investment business, higher sales volume of certain car models from HR Owen and better earnings from its hotels and resorts business.
A higher share of profit from its associate companies, especially Berjaya Kyoto Development (S) Ltd from the sale of residences and lower finance costs in the quarter, are also cited as contributing factors.
Quarterly revenue climbed 3.8% to RM1.53 billion from RM1.48 billion a year ago, primarily boosted by improved revenue from its gaming arm during the Chinese New Year season, higher progress billings from its property development and investment arm and higher automotive sales. It also registered higher average room rates at its resorts business, despite a drop in overall occupancy rates.
BLand’s net profit for the nine months ended Jan 31, 2017 (9MFY2017) declined by 5% to RM187.01 million from RM197.19 million a year ago, dragged by lower progress billings from its property business, combined with tax adjustment and higher operating expenses burdened by its subsidiary, Sports Toto Malaysia Sdn Bhd.
This came despite a 2.6% rise in revenue to RM4.7 billion from RM4.58 billion in 9MFY2016.
Looking forward, BLand expects its 4QFY2017 to be challenging, especially for its number forecast operations business, in light of illegal gaming activities, rising costs and weak consumer sentiment. However, it expects its resorts business to perform satisfactorily while its property market outlook is expected to “remain lukewarm”.
This article first appeared in The Edge Financial Daily, on March 23, 2017.