Berjaya Land posts RM180.47m net profit in Q2

PETALING JAYA: Berjaya Land Bhd reported a drop in net profit to RM180.47 million for the second quarter ended Oct 31, 2016 against RM208.3 million in the previous corresponding period, dragged down by higher prize payout and operating expenses reported by Sports Toto Malaysia Sdn Bhd, lower profit contribution from the property development and investment business, the amortisation of gaming rights allocated to the Philippines leasing of online lottery equipment business segment and lower investment related income.
Revenue was flat at RM1.62 billion compared with RM1.61 billion in the same period last year.
In a filing with the stock exchange, Berjaya Land said it expects the number forecast operator (NFO) business to be challenging for the remaining quarters of the financial year ending April 30, 2017 due to intense competition from the illegal gaming activities as well as lower consumer spending power arising from the volatility of the global economic environment, weaker consumer sentiments and rising costs.
In spite of the above, the group is expected to maintain its market share in the NFO business.
On the operation of H.R. Owen Plc., Berjaya Land noted that there is no immediate material or noticeable impact on the luxury vehicles market resulting from the uncertainties of Brexit as at to-date.
“However, the directors are cautious of the uncertainties that may arise from Brexit and the impact it may have on the motor dealership segment’s performance for the remaining quarters of the financial year ending April 30, 2017,” it said.
Meanwhile, the performance of its hotels and resorts business is expected to remain satisfactory whilst the property market outlook is expected to remain lukewarm.
Under the foregoing circumstances, Berjaya Land said its operating performance will continue to remain challenging in the remaining quarters of the financial year ending April 30, 2017.
For the first half of the year, Berjaya Land’s net profit dropped 29.8% from RM218.21 million to RM153.23 million on the back of a 2% rise in revenue from RM3.11 billion to RM3.17 billion.