Berjaya Assets 3Q earnings sharply lower due to massive tax reversal a year ago

KUALA LUMPUR (May 22): Berjaya Assets Bhd posted net profit of RM16.62 million for the third quarter ended March 31, 2018 (3QFY18), down 90.8% from RM179.87 million in the previous corresponding quarter.

The big difference was mainly due to the reversal for taxes in dispute amounting to RM156.47 million accounted for Berjaya Times Square Sdn Bhd (BTSSB), which reversed in the previous corresponding quarter, besides lower contribution from most business segments and higher operating expenses.

The group’s quarterly profit before tax dropped 20% to RM20.15 million, against RM24.18 million a year earlier, it said in a filing with Bursa Malaysia yesterday.

Its quarterly revenue also declined 12.17% to RM76.55 million, compared to RM87.16 million a year ago.

“The lower group revenue was mainly due to the gaming business segment operated by Natural Avenue Sdn Bhd (NASB) which continued to be impacted by rampant illegal gaming activities,” it said.

“The property development and property investment business segment reported lower revenue due to lower occupancy rates and lower jetty income.

“The hotel and recreation business segment's revenue was slightly lower compared with the previous year corresponding quarter due to lower occupancy rates and lower average room rates charged,” it added.

In the first nine months ended March 31, 2018, Berjaya Assets reported a net loss of RM2.76 million, as opposed to net profit of RM25.55 million recorded a year earlier. Its revenue dropped to RM264.2 million from RM270.53 million.

Berjaya Assets expects the rest of the financial year ending June 30, 2018 to be challenging.

“The directors expect property investment and hotel and related businesses operated by BTSSB Group and the gaming business operated by NASB to maintain its occupancy rates and market share respectively,” it said.

The counter closed up one sen or 3.13% at 49 sen per share yesterday, giving it a market capitalisation of RM1.26 billion. — theedgemarkets.com

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