Berjaya Land swings into a net loss in 3Q

KUALA LUMPUR (March 23): Berjaya Land Bhd (BLand) swung into a net loss of RM8.98 million in the third quarter ended Jan 31, 2018 (3QFY18), compared to a net profit of RM33.77 million a year ago on unfavourable foreign exchange loss and lower group's share of profit from Berjaya Kyoto Development (S) Pte Ltd, which had fewer Four Seasons Residences sold.

Its quarterly revenue, however, grew marginally to RM1.56 billion, from RM1.53 billion mainly due to higher revenue contribution from new and used car sales achieved by H.R. Owen Plc and higher average occupancy rates from hotels and resorts business segment

These offset lower revenue from both the gaming business segment and the lower progress billings of the property development and investment business segment, according to BLand's filing with Bursa Malaysia.

For the cumulative nine-month period ended Jan 31, 2018 (9MFY18), BLand posted a net loss of RM97.38 million, against a net profit of RM187 million. Revenue came in 1.6% higher at RM4.78 billion, from RM4.7 billion.

On its prospects, BLand remains confident that Berjaya Sports Toto Bhd will continue to maintain its market share in the number forecast operation (NFO) segment despite the continued illegal gaming activities and weaker consumer sentiments.

It added that the hotels and resorts business performance is expected to remain satisfactory whilst the property market outlook is expected to remain lukewarm.

“Under the foregoing circumstances, the directors are of the view that the operating performance of the group will continue to remain challenging in the remaining quarter of the financial year ending April 30, 2018,” it added.

BLand’s shares closed one sen or 3.45% lower at 28 sen yesterday, giving it a market capitalisation of RM1.4 billion. Over the past 12 months, the counter has fallen about 50.44%. — theedgemarkets.com

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