Berjaya Land makes RM11.5 million net profit for Q1

PETALING JAYA: Berjaya Land Bhd (BLand) saw a net profit of RM11.53 million in the first quarter ended July 31, 2017 from a net loss of RM27.24 million a year ago, on higher profit contribution from lower prize payout at Sport Toto Malaysia Sdn Bhd, property and hotels and resorts businesses arising from higher revenue, and lower finance costs.
The group saw a 3% jump in revenue to RM1.6 billion from RM1.55 billion in the previous year’s corresponding quarter, mainly due to higher revenue from H.R. Owen Plc arising from higher volume of new and used car sales coupled with certain new models available for sale; higher progress billings from property development and investment business; and higher revenue from the hotels and resorts business arising from higher overall occupancy and average room rates.
On its prospects, BLand said the directors expect the number forecast operation (NFO) business to be challenging for the remaining quarters of the financial year ending April 30, 2018 in view of the intense competition from illegal gaming activities coupled with rising costs and weak consumer sentiments.
“Notwithstanding these challenges, the directors are confident that the group will continue to maintain its market share in the NFO business for the remaining quarters of the financial year ending April 30, 2018,” BLand said.
The performance of the hotels and resorts business is expected to remain satisfactory while the property market outlook is expected to remain lukewarm.
“Under the foregoing circumstances, 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, 2018.”