Construction underway for the Great Mall of China in Hebei province, China. The photo was taken on April 5, 2012.
KUALA LUMPUR: Berjaya Land Bhd
(BLand) recorded a net profit of RM208.3mil for its second quarter ended Oct 31 compared with RM8.97mil a year ago, thanks to gains from selling a 50% stake in resort hotel developer Berjaya Kyoto Development (S) Pte Ltd (BKyoto) and revaluation of the fair value of its remaining BKyoto stake.
BLand had sold in July the 50% stake in BKyoto, which is developing the Four Seasons Hotel & Residences in Japan, to parent company Berjaya Corp for RM97.3mil for a gain of RM49.567mil. Additionally, BLand also “gained” RM146.847mil after remeasuring the fair value of the remaining 50% it still owns.
The toto betting operator and property developer said revenue for the quarter came in at RM1.62bil, an increase from the previous corresponding period’s RM1.41bil figure.
It attributed the higher group revenue mainly to strong sales of the 4D Jackpot games recorded by the gaming business operated by Berjaya Sports Toto Bhd’s principal subsidiary, Sports Toto Malaysia Sdn Bhd.
In addition, there was higher revenue from prestige car retailer H R Owen Plc from having additional outlets, which was further enhanced by a favourable foreign exchange rate.
There was also higher progress billings reported by its property development and investment business, BLand said.
These factors have offset the lower revenue reported by the hotels and resorts business, arising from lower average room rates.
The gains from the BKyoto disposal as well as higher profit contributions from both H R Owen and the property and investment business offset the lower profit reported by Sports Toto (due to the absorption of goods and services tax (GST) cost and coupled with a lower prize payout in the previous year’s corresponding quarter) and the hotels and resorts business (due to lower average room rates).
On its prospects for the rest of the year, BLand said in view of the dampened domestic consumer spending caused by the negative economic sentiment and the GST incurred and being absorbed by Sports Toto as well as the weakened ringgit, the gaming business was expected to be challenging.
The performance of the hotels and resorts business, meanwhile, is expected to remain satisfactory while the focus of the property development business will be on its overseas development projects.
“As such, the directors are of the view that the operating performance of the group will continue to remain challenging in the remaining quarters of the financial year ending April 30, 2016,” it said.
The board did not recommend any dividend for the quarter under review.
BLand shares closed unchanged at 72 sen on Monday.
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