Berjaya Land’s Q2 earnings leap on fair value gain

PETALING JAYA: Berjaya Land Bhd’s net profit grew 23-fold to RM208.3 million for the second quarter ended Oct 31, 2015, against RM8.97 million in the previous corresponding period, mainly due to a gain on remeasurement to fair value of its remaining stake in Berjaya Kyoto Development (S) Pte Ltd (BKD) totalling RM196.41 million.
The gain was from the deemed disposal arising from the dilution of its stake in BKD.
Revenue for the quarter under review jumped 15.17% from RM1.41 billion to RM1.62 billion.
In a filing with the stock exchange, Berjaya Land said the gaming business is expected to be challenging while maintaining its market share in the numbers forecast by the industry operator.
The performance of the hotels and resorts business is expected to remain satisfactory while focus on the property development business will be on its overseas development projects.
“As such, the directors are of the view that the operating performance of the group will continue to remain challenging in the remaining quarters of the financial year ending April 30, 2016,” it said.
Its nine-month net profit jumped more than four times from RM46.64 million to RM218.21 million on the back of an 11.14% increase in revenue from RM2.82 billion to RM3.13 billion.