Mulpha’s revenue boosted by better property and investment showing

PETALING JAYA: Real estate investor and developer Mulpha International Bhd has posted a net loss of Rm10.65mil for the first quarter of the financial year ending Dec 31, 2020, impacted by its hospitality division and lower share of associated profits.

However, this was offset by better performance in the group’s property and investment divisions, which contributed to the 10% yearon-year increase in group revenue at Rm161.42mil, compared to the same quarter last year.

According to a Bursa Malaysia filing yesterday, Mulpha said the property division saw higher settlements in the Mulpha Norwest projects during the quarter, while its investment division experienced favourable foreign exchange movement on US dollar-denominated bond.

“The underperformance by the hospitality division was adversely impacted by the Covid-19 outbreak, along with the travel ban imposed globally and closure of hotels during the lockdown effective from late

March 2020.

“The performance during the corresponding quarter last year was boosted by the receipt of insurance recoveries of Rm87.9mil,” said Mulpha.

The hospitality division registered a pre-tax loss of Rm6.41mil for the current quarter, on the back of a revenue of Rm82.03mil, compared to revenue of Rm86.52mil and pre-tax profit of Rm89.57mil in the previous year’s corresponding quarter.

The Covid-19 outbreak has resulted in significant disruption to Mulpha’s hospitality division with the closure of all its hotels in late March, with the exception of Intercontinental Sydney which has remained open to provide accommodation for guests being quarantined under the Australian government’s 14-day isolation requirements.

“As lockdown restrictions are progressively eased over the coming months, it is expected that domestic business and leisure travel will increase during the third quarter of 2020.

“It remains unlikely however that Australia will re-open borders to international travel until 2021.

“Accordingly, the group anticipates a gradual recovery over the next six to 12 months,” said Mulpha.

As more real estate developers and investors are seeking non-bank finance, on the back of further restrictions on new lending by Australian banks that have been heavily impacted by Covid-19, Mulpha expects higher levels of activity over the coming 12 months for its real estate lending division Multiple Capital.

Apart from that, Mulpha’s investments in the education sector have continued to meet expectations in the first quarter.

The group’s investment in online learning tool Education Perfect has experienced significant new demand as high schools in Australia and globally needed to build their capacity to teach remotely.

Mulpha anticipates that this trend will accelerate as a result of the Covid-19 pandemic.