Berjaya Assets Q1 net profit jumps 62%

PETALING JAYA: Berjaya Assets Bhd’s (BAssets) net profit for the first quarter ended Sept 30, 2015, soared 62.7% to RM11.6 million, from RM7.14 million in the previous corresponding quarter, mainly due to higher revenue from property development and the investment business segment.
It said that the gaming business segment operated by Natural Avenue Sdn Bhd (NASB) reported higher profit contribution due to lower prize payout. In addition, the group recognised a gain on foreign exchange amounting to RM2.1 million.
In a filing with Bursa Malaysia last Friday, the company said revenue for the quarter was almost flat at RM96.3 million mainly due to NASB, which was impacted by rampant illegal gaming activities that resulted in an 11% drop in revenue.
However, it was partly mitigated by higher rental income from property development and the investment business segment, as well as the hotel and recreation business segment arising from higher occupancy rates.
Commenting on its prospects, BAssets said the goods and services tax implementation, falling crude oil prices, weakening ringgit and lacklustre performance of the tourism industry may have an impact on the Malaysian economy.
“The directors envisage that the operating performance of the group for the remaining quarters in financial year ending June 30, 2016 will be challenging,” it said.
However, despite the challenges, the group expects the property investment and hotel and related businesses and gaming business to maintain its occupancy rates and market share respectively going forward.