BCorp’s Q3 net profit plunges

KUALA LUMPUR: Berjaya Corp Bhd’s (BCorp) net profit for the third quarter ended Jan 31, 2016 slumped to RM15.8mil from RM975mil a year ago due to a lack of contribution from the auto division and lower income from its gaming business.

It said in a statement on Tuesday that the previous year’s corresponding quarter was also boosted by a one-time remeasurement gain of about RM1bil.

Notably, Berjaya Auto Bhd (BAuto), the distributor of Mazda cars, ceased to be a subsidiary of BCorp since Dec 1, 2014. BCorp unit Berjaya Group Bhd currently owns about 22% in BAuto.

In a filing with Bursa Malaysia, BCorp said its revenue for the third quarter fell 2% to RM2.17bil from RM2.21bil previously.

Earnings per share for the quarter stood at 0.37 sen from 19.64 sen previously.

Cumulatively, BCorp said its net profit for the first nine months of its financial year ending April 30, fell 83% to RM194.2mil from RM1.14bil a year earlier. Its revenue for the period dropped to RM6.5bil from RM7.2bil.

BCorp said the decline in both topside and downside was because of its toto betting operations and spin-off of BAuto.

“Toto betting operations reported a lower pre-tax profit due to a higher prize payout and the impact of the goods and services tax,” BCorp said.

On its other businesses, BCorp said the restaurant and cafe, and property investment and development segments reported a higher pre-tax profit for the period on the back of improved results of its Starbucks business and higher progress billings.

Its hotels and resorts business reported a lower profit mainly due to lower average room rates in the current financial period, BCorp added.

“Given the prevailing economic conditions and financial outlook, the directors are of the view that the group’s operating environment will be challenging going forward,” it said.
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