Berjaya Land posts RM1.47 billion revenue for Q2

PETALING JAYA: Berjaya Land Bhd (BLand) posted a narrowed net loss of RM31.64 million and revenue of RM1.47 billion for its second quarter ended Dec 31, from a net loss of RM63.73 million and a revenue of RM1.53 billion in Q2’19.

However, the group’s pre-tax profit more than doubled to RM24.49 million during the quarter, from RM11.19 million previously, mainly contributed by the property development and investment business segment in line with its higher revenue and lower operating expenses.

HR Owen has also reported higher profit contribution from lower operating expenses incurred, resulting from certain austerity measures coupled with support fee income received from franchises as well as certain business relief support from the United Kingdom government.

“The lower group revenue was mainly due to the decrease of 19.9% in the revenue reported by Sports Toto Malaysia Sdn Bhd arising from the selective EMCO and CMCO; and the lower average occupancy and room rates from the hotels and resorts business segment due to international border closures and travel restrictions,” the group said in a Bursa filing.

The above factors were mitigated by the higher revenue reported by the property development and investment business arising from the completion of the handing over of a mixed development project located in Dong Nai, Vietnam, in the current quarter. The revenue reported by HR Owen in the current quarter was comparable to that of the previous year corresponding quarter.

For the six-month period, the group’s net loss was wider at RM73.51 million, compared with RM69.71 million a year before. Revenue decreased to RM2.93 billion, from RM3.11 billion previously.

Looking ahead, the group said with the constantly evolving pandemic, it is challenging to ascertain the full extent and duration of the impact to the group’s operations and financial performance from the government-imposed restrictions.

“The economy is expected to recover at a slower pace as the business environment and consumer sentiment remain weak until the vaccination programs are well underway in countries where the group’s subsidiary companies operate,” it added.

The performance of the group for the remainder of FY21 ending June 30 is expected to remain challenging.