PETALING JAYA: Berjaya Corporation Bhd (BCorp) posted revenue of RM2.46 billion and pre-tax loss of RM91.64 million for the fourth quarter ended June 30, 2024 (Q4’24).
This compares with revenue of RM2.56 billion and pre-tax loss of RM8.70 million in the corresponding quarter of the previous year.
The group’s results in the quarter under review were contributed by the
following business segments:
Services reported higher revenue in the quarter, driven by higher earnings from the managed telecommunications network services and Cloud & Internet of Things businesses.
Additionally, the gaming business, operated by STM Lottery Sdn Bhd, reported higher revenue, due to increased sales per draw with an additional draw conducted as compared to last year’s corresponding quarter (41 draws versus 40 draws).
The stockbroking business also registered an increase in revenue due to higher brokerage income in line with an increase in market trading volume. The asset and fund management business rose due to higher fund management income earned. The services segment reported a higher pre-tax profit which was in tandem with the higher revenue and coupled with lower prize payout by STM Lottery in the quarter under review.
Hospitality reported an increase in revenue mainly due to higher occupancy rates, and a boost in tourist arrivals attributed to visa exemption for certain countries. Despite higher revenue achieved, it reported lower pre-tax profit due to
higher operating costs incurred.
Retail posted lower revenue and pre-tax loss, mainly due to the drop in
revenue in the food retail business, which was mainly due to the current sentiment in relation to the conflict in the Middle East.
The non-food retail business reported lower revenue mainly contributed by HR Owen Plc’s lower sales volume in both new and used car sectors, driven by the phasing out of certain models at the end of their product life cycles. Despite this, the impact on HR Owen’s revenue was minimised when converted to ringgit, due to favourable foreign exchange effects.
Property reported lower revenue and lower results mainly due to nearly all the residence units of an overseas project were sold in the previous quarter and the
fact that the ongoing local project is nearing completion.
The group registered revenue of RM10.04 billion for the financial year ended June, 30 2024, a rise from RM9.61 billion in the previous financial year. The increase in group revenue was mainly driven by growth across most segments:
Retail (non-food) segment’s revenue increased, with HR Owen reporting higher revenue in ringgit despite a decrease in its revenue reporting in pound sterling due to lower volume of cars sold and challenging economic conditions in the United Kingdom.
Non-food retail’s lower revenue was mainly due the current sentiment in relation to the conflict in the Middle East.
Property reported higher revenue in the year, mainly due to higher sales of overseas residence units.
Hospitality benefitted from higher overall average room rates and full-year
revenue contribution from Iceland Parliament Hotel, which commenced operations in December 2022.
Services’ primary contributor to the increase in revenue was MTNS and Cloud & IoT businesses.
Additionally, STM Lottery reported higher revenue despite conducting fewer draws during the year (167 draws versus 175 draws). The growth was attributed to higher sales per draw, driven by increased sales from higher accumulated jackpot prizes.
The stockbroking business and asset and fund management sectors also registered increased revenue mainly due to higher brokerage income and performance fees.
For full financial year, the group reported a higher pre-tax profit of RM673.82 million, a significant increase from RM260.84 million in the previous financial year. This was mainly due to gain on disposal of subsidiary companies totalling RM498.33 million and RM154.05 million gain on remeasurement of retained equity interest in a former subsidiary company.
However, operational profit was impacted due to the retail segment’s performance decline.
Retail (non-food) segment’s lower pre-tax profit was mainly due to HR Owen’s incurrence of higher operating costs, inflationary pressures, higher depreciation following the completion and full operation of Hatfield Centre, as well as the impact of the UK interest rate hike.
The food retail business reported a pre-tax loss in the year mainly due to the reason mentioned above.
Property’s higher pre-tax profit was in tandem with the higher revenue achieved in the current year.
Hospitality reported a higher pre-tax profit, due to the higher overall average room rates.
Services posted a higher pre-tax profit due to higher sales achieved and coupled with the lower prize payout by STM Lottery.
BCorp said Malaysia’s economic growth is expected to be driven by strong domestic demand and the moderation of average inflation rate despite geopolitical uncertainties. The group will be monitoring prevailing global and local political developments in the countries where it has business operations.
The performance of the domestic business segments of the group is expected to improve on the back of strong consumer spending and improvement in tourism activities. However, the closure of legal Number Forecast Operators outlets in Kedah and Perlis may result in the proliferation of illegal operators in these areas.
Taking into account of the aforesaid and barring any unforeseen circumstances, the board is cautiously optimistic that the performance of the business operations of the group for the financial year ending June 30, 2025 will be satisfactory.
