PETALING JAYA: Berjaya Corporation Bhd (BCorp) recorded revenue of RM2.19 billion and incurred a pre-tax loss of RM118.33 million for Q3 ended March 31, 2026 (FY26), compared to revenue of RM2.54 billion and a pre-tax loss of RM8.88 million in the same period of the previous year.
The group’s performance for the quarter was driven by the retail (non-food) business, which reported lower revenue, mainly due to a lower contribution from HR Owen Plc, reflecting lower sales volume in both the new and used car segments.
The longer vehicle product life cycle, coupled with transition gaps between new model launches, led to the poor sales performance. In addition, when translated into ringgit, the revenue reduction was further impacted by unfavourable foreign exchange translation effects.
The non-food retail business segment reported a lower pre-tax profit, in line with the drop in revenue, and higher statutory employment costs arising from newly implemented United Kingdom (UK) labour regulations effective April 2025.
The retail (food) business reported an improvement in revenue, mainly attributable to contributions from the group’s overseas operations and higher revenue from the Starbucks operations in Malaysia, despite a reduced number of operating stores.
These improvements offset the lower revenue from the Kenny Rogers Roasters operations in Malaysia, which was mainly due to the continued closure of non-performing stores during the current financial quarter.
The food retail business reported a lower pre-tax loss, mainly due to improved profit margins from cost-saving initiatives and store rationalisation, as well as lower depreciation and amortisation charges following the impairment losses recognised in the previous financial year.
As for property, the segment reported higher revenue for the current quarter, mainly due to higher progress billings from its projects at Residensi Oak, Bukit Jalil and Pangsapuri Azalea, Subang Heights. This was partially offset by lower sales of residential units from a local project in the current quarter.
The property segment’s pre-tax profit was primarily driven by the higher revenue as reported.
Meanwhile, the hospitality segment reported a higher reve
nue, primarily attributed to higher overall occupancy rates in the current quarter and a lower pre-tax loss, in line with the higher revenue.
The services segment recorded lower revenue, mainly due to lower revenue contributions from STM Lottery Sdn Bhd, as the previous year’s corresponding quarter benefited from stronger sales driven by higher accumulated jackpot prizes from the Supreme Toto 6/58 game. Further, there were fewer draws conducted in the current quarter (41 versus 42).
In addition, the lower revenue was reported by the telecommunications network services (MTNS) business.
The decrease in MTNS revenue was mainly due to certain projects nearing the end of their deployment phase, with several projects having been completed in the previous financial year.
The lower pre-tax profit reported by the services segment was mainly due to lower revenue from gaming operations and MTNS for the current financial quarter.
For the nine-month period of FY26, the group registered a revenue of RM6.71 billion and incurred a pre-tax loss of RM81.72 million for the financial period ended March 31, 2026, compared to a revenue of RM6.97 billion and a pre-tax loss of RM149.47 million in the previous year’s corresponding period.
The group’s performance during the nine-month period was contributed to by the retail (non-food) business, which reported a decline in revenue primarily due to lower contribution from HR Owen, arising from reduced sales volume in the new car segment.
The subdued performance of the new car sector was mainly attributed to extended vehicle product life cycles, which continued to constrain the model mix and availability of new models. In addition, customers remained cautious in their luxury spending amid prolonged economic uncertainty.
When translated into ringgit, the revenue decline was further impacted by unfavourable foreign exchange translation effects.
Meanwhile, HR Owen recorded a pre-tax loss mainly due to lower sales, margin pressure, and higher operating expenses, particularly arising from increased statutory employment costs following the implementation of new UK labour regulations.
As for the retail (food) business, the segment recorded a marginal increase in revenue, mainly attributed to the factors mentioned in the third quarter.
Despite a marginal increase in revenue in the food retail business, the pre-tax loss decreased significantly, mainly due to improved profit margins from cost-saving initiatives and store rationalisation, as well as lower depreciation and amortisation charges following impairment losses recognised in the previous financial year.
The property segment reported higher revenue for the current period, due to higher progress billings from its projects at Residensi Oak, Bukit Jalil and Pangsapuri Azalea, Subang Heights. This was partially offset by lower sales of residential units from a local project in the current period.
Additionally, the property segment’s better performance was in line with the increase in revenue recorded in the current period.
As for hospitality, the segment reported higher revenue, mainly attributable to a higher overall occupancy rate during the current period, while recording lower results due to unrealised foreign exchange translation effects.
The services segment reported a lower revenue contribution in the current period, primarily due to relatively lower sales from STM Lottery, as the previous year’s corresponding period benefited from strong sales driven by higher accumulated jackpot prizes, particularly from the Supreme Toto 6/58 game.
The services segment also recorded a lower revenue contribution from the MTNS business.
The decline in MTNS revenue in the current period was mainly due to certain projects nearing completion of their deployment phase, and several projects were completed in the previous financial year.
In addition, the gaming business operated by STM Lottery reported a lower pre-tax profit, which was in line with the lower revenue recorded during the current period.
Similarly, the MTNS business reported a lower pre-tax profit, mainly due to lower revenue and reduced gross profit in the current period.
On prospects, the group said Malaysia’s economic growth is expected to be driven by strong domestic demand and the moderation of the average inflation rate despite the uncertainties arising from ongoing geopolitical tensions and conflicts, as well as the inflationary tariffs being imposed by the US government.
The group will monitor prevailing global and local political developments in the countries where it operates.
The performance of the group’s domestic business segments is expected to improve on the back of strong consumer spending and an improvement in tourism activity.
As for the number forecast operator business, it is expected to continue to deliver growth in line with the popularity of its Jackpot and Digit games and continue its lead in terms of market share in the legalised NFO business sector.
The board is cautiously optimistic that the group’s business operations for the remaining quarter of the financial year ending June 30, 2026, will be satisfactory.
