OWG eyes 50% growth in revenue

SHAH ALAM: Theme park developer Only World Group Holdings Bhd (OWG) expects to achieve a 50% increase in revenue by the financial year ending June 30, 2016 (FY16), driven by the opening of The Top in Komtar, Penang.
Speaking to reporters after its AGM and EGM yesterday, managing director and CEO Datuk Richard Koh Cheng Keong said The Top is expected to be fully operational in April or May next year, adding that to date 80% of the refurbishment work has been completed.
He said the opening of The Top, will coincide with the opening of other attractions, food and beverage, as well as retail outlets.
“We are looking to open a state gallery and a few museums there. All of these should be open by then,” Koh said.
He added that the weakening ringgit should also see most people choosing to spend more in the country than overseas, a trend that would be beneficial for the group.
“The weakening ringgit also attracts foreigners and tourists, and that is also good for us,” Koh said.
On potential joint ventures or acquisitions, he said the group has been on the look out, but nothing has materialised yet.
“People have come to us with land and shopping malls. We have also been approached by foreign companies in Indonesia and Brazil to do a JV with them, but we are still discussing and we have not finalised it yet.
“We are looking for good locations, population, as well as spending power. When we look for locations, we want to make sure that the surrounding area will be able to sustain revenue for the longer term,” he added.
Koh is hoping that the group will finalise discussions by the middle of next year.
OWG recently acquired a 60% stake in escape game provider Escaperoom Holdings Sdn Bhd for RM5.4 million, as part of its global expansion strategy by leveraging on Escaperoom’s presence overseas.
The real-life physical adventure games/puzzle brand has seven outlets throughout Malaysia and one outlet each in Australia, Estonia, India, Romania, Thailand, the UK and Vietnam.
The acquisition is expected to contribute RM4 million to the group’s profit, within the next two financial years.
For the first quarter ended Sep 30, 2015 (Q1FY16), OWG’s net profit increased 0.3% to RM3.05 million, from RM3.04 million in the previous corresponding quarter in 2014. Revenue was up 18.2% to RM22.7 million for the quarter, against RM19.2 million for the same quarter in 2014.
At the AGM, shareholders approved the proposed bonus issue of 37 million new shares among other resolutions.
The bonus issue of 37 million new shares of 50 sen each is on the basis of one bonus share for every five existing shares held. Shareholders had also passed six other resolutions.