Berjaya Corp registers RM2.23b revenue for Q2’24

Directors cautiously optimistic that performance of group’s businesses for remaining quarters of financial year will be satisfactory

Berjaya Corporation Bhd (BCorp) registered revenue of RM2.23 billion in the second quarter ended Dec 31 2023 (Q2’24) compared with revenue of RM2.34 billion in the previous year corresponding quarter.

However, the group registered a pre-tax loss of RM114.84 million in the quarter under review compared to a pre-tax profit of RM92.08 million in the previous year’s corresponding quarter.

The group’s results in the quarter under review were contributed by the following business segments:

Retail segment posted a lower revenue mainly due to a drop in the food retail business, primarily stemming from the boycott of Starbucks’ cafes arising from the Middle East conflict. The non-food retail business reported an increase in revenue due to favourable foreign exchange impact when H.R. Owen Plc’s revenue was converted into ringgit.

The retail segment reported a pre-tax loss as opposed to a pre-tax profit in the corresponding quarter of the previous year.

This shift can be attributed primarily to the pre-tax loss reported by the food retail business, along with the higher pre-tax loss incurred by the non-food retail business. Property segment reported lower revenue and lower pre-tax profit mainly due to lower sales of overseas residence units compared with the previous year’s corresponding quarter.

Services segment posted lower revenue mainly due to lower revenue reported by the gaming business, which is operated by STM Lottery Sdn Bhd (STM Lottery). The drop in revenue was mainly due to fewer draws conducted. However, this was mitigated by the higher revenue recorded by the managed telecommunications network service business, attributed to the higher project activities under the Universal Service Provision project.

The segment reported lower pre-tax profit due to lower sales achieved by STM Lottery, higher prize payout coupled with higher operating expenses.

On a positive note, the hospitality segment posted higher revenue and improved results mainly due to the higher overall average room rates and the full three months’ revenue from Iceland Parliament Hotel, which commenced its operations in December 2022, when compared with the corresponding quarter of the last year.

For the six-month period ended Dec 31 2023, the group registered revenue of RM4.8 billion and pre-tax loss of RM12.86 million compared with revenue of RM4.58 billion and pre-tax profit of RM199.67 million in the previous year’s corresponding period.

The board does not recommend any dividend for the quarter ended Dec 31, 2023.

The management of the number forecast operation (NFO) segment of the group is of the view that the business in Malaysia will continue its upward trajectory of per draw sales growth driven by favourable consumer spending during the festive period and continued consumer interest in the jackpot games.

The performance of the group’s business segments is expected to improve on the back of moderate consumer spending, rebound of tourism activities and better-than-expected labour market conditions. BCorp said it will monitor the prevailing global and local political developments in the countries where the group has business operations.

Barring any unforeseen circumstances, the directors are cautiously optimistic that the performance of the group’s businesses for the remaining quarters of the financial year ending June 30, 2024 will be satisfactory.