BLand 4Q net profit at RM88.57 mil on lower investment expenses

KUALA LUMPUR (June 23): Berjaya Land Bhd (BLand) posted a net profit of RM88.57 million in its fourth quarter ended April 30, 2017 (4QFY17), compared with a net loss of RM458.58 million a year ago, as it recorded significantly lower investment-related expenses.

This marks its third profitable quarter in a row, after the group returned to the black in 1QFY17. 

Its 4QFY17 investment-related expenses was down 98% to RM13.27 million, from RM560.57 million a year ago. Its quarterly revenue, however, slipped 2% to RM1.68 billion, from RM1.7 billion in 4QFY16, on lower contribution from both Sports Toto Malaysia Sdn Bhd — which had lower number of draws — and its property development and investment business.

"In the previous year's corresponding quarter, the revenue of property development and investment business was higher, as it included the sale of several parcels of vacant land," it said.

For the full year (FY17), it registered a net profit of RM275.58 million, compared with a net loss of RM270.64 million a year ago, while revenue inched up 2% to RM6.38 billion, from RM6.28 billion.

It said the substantial improvement in profit was because of higher investment-related income. Besides, the group also booked substantial impairment in goodwill and assets held for sale in the previous financial year.
 
Going forward, with intense competition from the illegal gaming activities, coupled with the rising costs and weak consumer sentiments, BLand said the directors expect the number forecast operation (NFO) business to be challenging for FY18.
 
However, the group expects to continue maintaining its market share in the NFO business, BLand added.
 
“The performance of the hotels and resorts business is expected to remain satisfactory, whilst the property market outlook is expected to remain lukewarm,” BLand said, adding the directors view the group to continue seeing its operating performance to remain challenging in FY18, under the foregoing circumstances.
 
Shares in BLand closed unchanged at 47 sen today, for a market capitalisation of RM2.35 billion.

Over the past 12-months, its share price has retreated 33% or 23 sen, from 70 sen. — theedgemarkets.com

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