Berjaya Land 2Q earnings dip 13.3% to RM180.47 mil

KUALA LUMPUR (Dec 21): Berjaya Land Bhd’s (BLand) net profit for the second quarter ended Oct 31, 2016 (2QFY2017) slipped 13.3% to RM180.47 million or RM3.62 a share, from RM208.30 million or RM4.17 per share a year earlier.

The group attributed the fall to higher prize payout and operating expenses incurred by Sports Toto Malaysia Sdn Bhd, lower profit contribution from the property sector and investment business on lower progress billings, amortisation of gaming rights allocated to the Philippine leasing of online lottery equipment business segment and lower investment-related income.

However, the group said the decline was partly mitigated by correspondingly higher profit of the hotel and resort business arising from higher revenue as well as higher share of profit from associated companies, including Berjaya Kyoto Development (S) Ltd (BKDS).

“BKDS has recognised sales of several units of residences located at the recently opened luxurious Four Seasons Hotel Kyoto. This offset the share of losses from Berjaya Assets Bhd, which reported a material under provision of tax in respect of prior years,” it said.

BLand said its revenue rose marginally by 0.6% to RM1.62 billion from RM1.61 billion in 2QFY2016, mainly attributed to higher revenue from HR Owen plc, coupled with certain new models on sale, recognition of substantial project contract sales by International Lottery & Totalizor Systems Inc (a subsidiary of Berjaya Sports Toto Bhd), and higher revenue from the hotel and resort business arising from higher overall average room rates.

For the cumulative first six months of FY2017 (1HFY2017), BLand’s net profit shrank 29.8% to RM153.23 million, from RM218.21 million in 1HFY16. Revenue rose 2% to RM3.17 billion from RM3.11 billion.

This article first appeared in The Edge Financial Daily, on Dec 21, 2016. Subscribe to The Edge Financial Daily here.