BAssets Q3 net profit at RM179.87m

PETALING JAYA: Berjaya Assets Bhd’s (BAssets) saw a net profit of RM179.87 million in the third quarter ended March 31, 2017, compared with a net loss of RM2.54 million a year ago mainly due to the reversal of substantial provisions for taxes in dispute.

The reversal of substantial provision for taxes in dispute was accounted for after the Kuala Lumpur High Court of Malaya granted Berjaya Times Square Sdn Bhd (BTSSB) a stay of civil proceedings for the disputed taxes pending the full and final determination of the tax appeal case by Special Commissioners of Income Tax.

BAssets registered higher pre-tax profit in the current quarter of RM24.19 million compared with a net loss of RM33,000 a year ago mainly due to favourable fair value changes of investment properties amounting to RM28.0 million.

However, its revenue fell 11% to RM87.16 million in the previous year’s corresponding quarter of RM97.77 million mainly due to the gaming business segment operated by Natural Avenue Sdn Bhd (NASB) which continued to be impacted by rampant illegal gaming activities.

For the nine months period, BAssets’ net profit more than doubled to RM25.55 million from RM11.09 million a year ago, while revenue dropped 6.3% to RM270.53 million compared with RM288.77 million in the previous year due to same factors in Q3.

Given the current economic conditions and financial outlook, the directors expect the property investment and hotel and related businesses operated by BTSSB and the gaming business operated by NASB to maintain its occupancy rates and market share respectively going forward.

“The directors envisage that the operating performance of the group for the remaining quarter in financial year ending June 30, 2017 will be challenging,” BAssets said.