PETALING JAYA: Berjaya Land Bhd (BLand) registered a net profit of RM208.3mil for its second quarter ended Oct 31 compared with RM8.97mil a year ago.
Revenue for the quarter came in at RM1.62bil, an increase from the previous corresponding period’s RM1.41bil figure.
The higher group revenue was mainly attributed to strong sales of the 4D Jackpot games recorded by the gaming business operated by Berjaya Sports Toto Bhd’s principal subsidiary, Sports Toto Malaysia Sdn Bhd.
Apart from that, there was higher revenue from H R Owen Plc from having additional outlets, which was further enhanced by a favourable foreign exchange rate.
Upon translating its results to ringgit, H R Owen contributed an increase to group revenue by 5.5%.
There was also higher progress billings reported by its property development and investment business.
These factors have offset the lower revenue reported by the hotels and resorts business, arising from lower average room rates.
Meanwhile, the group has gained on a deemed disposal arising from the dilution of the group’s equity interest in Berjaya Kyoto Development (S) Pte Ltd (BKD) and the resulting gain on a remeasurement to the fair value of its remaining stake in BKD totalling RM196.41mil.
“Profit contribution from both H R Owen and the property and investment business was higher compared with the previous corresponding quarter resulting from improved revenue.
“Therefore, the lower profit stemming from Sports Toto due to the absorption of the goods and services tax (GST) cost, coupled with a lower prize payout a year ago, has been offset,” it said in a Bursa Malaysia filing yesterday.
BLand 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, 2016.
The gaming business is expected to be challenging while maintaining its market share in the numbers forecast operator industry.
This is in view of the dampened domestic consumer spending caused by the negative economic sentiment, the GST incurred and the weakened ringgit. On the other hand, the performance of the hotels and resorts business is expected to remain satisfactory.
