Berjaya Corp’s Fourth-quarter Loss Narrows Year on Year as Revenue More Than Doubles, Boosted by Gaming and Food and Beverage Operations

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Berjaya Corp Bhd’s net loss narrowed to RM242.54 million from RM323.76 million a year before in the fourth quarter ended June 30, 2021 (4QFY21), as the group’s sales more than doubled to RM1.75 billion from RM859.02 million.

The business said in a statement Wednesday that its quarterly loss was attributable to the recognition of non-cash impairment losses on certain assets. However, the loss was offset by profits generated by the group’s other businesses, including gaming, food and beverage, and consumer marketing.

Quarterly revenue increased significantly as a result of both its gaming operations through Sports Toto Malaysia Sdn Bhd and its automobile distribution business through H.R. Owen Plc. Additionally, the organisation increased revenue in 4QFY21 from its consumer marketing, food and beverage, property investment and development, and hotels and resorts business areas.

The rise in income from the hotels and resorts business segment was attributed to a higher overall occupancy rate driven by domestic travel demand, as well as greater “dine-in” food and beverage revenue during the March 5–May 31 Conditional Movement Control Order (CMCO). “The relaxation of travel and social restrictions in Iceland during the current fiscal quarter also contributed to the increase in revenue,” it noted.

It also stated that Sports Toto revenue increased significantly, as 28 draws were held in 4QFY21, compared to just six in 4QFY20. “The reinstatement of MCO 3.0 resulted in the cancellation of 15 draws in the current quarter under review, compared to 34 draws in the prior year’s corresponding period when MCO 1.0 was in effect,” it added.

However, the group’s net loss increased from RM87.57 million in 3QFY21, as revenue fell nearly 4% to RM1.82 billion, owing to lower contributions from its hotel and resorts division.

BCorp’s net loss increased to RM438.8 million in FY21 from RM95.23 million, despite revenue increasing 6.73 percent to RM7.46 billion from RM6.99 billion.

Berjaya Corp reported a pre-tax loss of RM189.51 million in the current financial year under review, compared to a profit of RM173.46 million the previous year, owing principally to the non-cash impairment of assets, both tangible and intangible, totaling approximately RM203.16 million.

“The group would have earned about RM13.65 million in pre-tax profit before deducting the RM203.16 million in non-cash impairment losses. This outcome was accomplished despite the severe impact on the hotels and resorts business segment from international border closures and domestic travel restrictions. Profits were generated in other business segments to offset the losses.

In FY21, the group realised a gain of about RM67 million on the sale of Berjaya Jeju Resort Limited. However, the group realised a larger gain of approximately RM669.79 million in FY20 from the sale of the trust beneficial interest in the hotel component of the Four Seasons Hotel & Hotel Residences in Kyoto, Japan.

Berjaya Corp stated that it anticipates its business activities to do well in FY22 as the economy begins to open up both domestically and internationally.

Berjaya Corp shares closed unchanged at 26 sen, giving the group a market capitalization of RM1.35 billion. The stock has increased 41.67 percent in the last year.

Published by Zack Baharum

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