BCorp’s Q1 revenue rises 4.2%
> Higher to RM2.22 billion from RM2.14 billion a year ago
PETALING JAYA: Berjaya Corp Bhd registered a higher revenue of RM2.22 billion for the first quarter ended July 31, 2016 compared with RM2.14 billion a year ago, mainly due to higher revenue reported by the group’s various business segments.
The restaurant and cafe business reported a higher revenue for the current quarter on higher sales recorded by existing cafes as well as additional cafes operating in the current quarter.
The property investment and development business revenue growth was mainly due to strong sales from a property project in China, while the hotels and resorts business saw higher overall occupancy and average room rates in the quarter under review.
The toto betting operations operated by Sports Toto Malaysia Sdn Bhd, principal subsidiary of Berjaya Sports Toto Bhd, benefited from strong sales of the 4D Jackpot game due to the high jackpot in the current quarter under review.
The marketing of consumer products and services segment however, reported lower revenue as the retail distribution business was affected by unfavourable economic conditions in the Greater China Markets.
The quantum of decrease was mitigated by higher revenue reported from the motor distribution business operated by H.R. Owen PLC due to higher sales volume of new cars coupled with certain new models being available for sale.
Meanwhile, the group registered a lower pre-tax profit for the current quarter of RM71.61 million compared with RM183.84 million a year ago, mainly due to losses from the retail business and lower share of associated companies’ results as a result of the cessation of equity accounting for Berjaya Auto Bhd’s results and share of higher losses from certain associated companies.
In addition, there was higher net investment-related income in the previous year’s corresponding quarter. The retail distribution business reported a pre-tax loss in the current quarter under review mainly due to unfavourable economic conditions in China as compared with the preceding year’s corresponding quarter.
The motor distribution business reported a lower pre-tax profit in the current quarter under review mainly due to higher operating expenses incurred while the lower pre-tax profit reported by the restaurant and cafe business was mainly due to the depreciation of the ringgit, which had impacted the profit margin of the businesses in Malaysia.
The property investment and development business contributed a higher pre-tax profit mainly due to strong sales.
The hotels and resorts business reported a higher pre-tax profit mainly due to higher revenue in the current quarter as compared with the previous year’s corresponding quarter while the gaming business contributed a higher pre-tax profit mainly due to lower prize payout in the current quarter under review.
“Given the prevailing economic conditions and financial outlook, the directors are of the view that the group’s operating environment will be very challenging going forward,” BCorp said in a statement.