KUALA LUMPUR (May 25): YTL Corp Bhd’s net profit for the third quarter ended March 31, 2018 (3QFY18) fell 52.4% to RM136.25 million, from RM285.95 million a year ago, on lower construction margins and higher operating costs.

The group said the lower earnings were also due to a loss recorded for its management services segment. This was due to the absence of one-off adjustments arising from accounting treatment of loan restructuring recorded by an associated company, and higher finance costs incurred by YTL Power International Bhd.

Revenue for 3QFY18 increased 4.4% to RM3.88 billion from RM3.72 billion, mainly due to better site progress for the group’s construction segment, as well as contributions from its hotel segment, namely Hotel Stripes in Kuala Lumpur, Sydney Harbour Marriott Hotel in Australia and three newly-acquired hotels in the UK.

In a filing with Bursa Malaysia, YTL Corp said its net profit for the nine months ended March 31, 2018 dropped 30.6% to RM405.24 million from RM583.97 million a year ago.

Revenue for the nine months grew 8.1% to RM11.71 billion from RM10.83 billion previously.

As for its prospects, YTL Corp said the performance of its respective segments — construction, information technology and e-commerce, cement manufacturing and trading, property investment and development, management services and hotels — is expected to be satisfactory.

YTL Corp shares closed down 1.5 sen or 1.5% yesterday at 99.5 sen, with a market capitalisation of RM10.69 billion.

This article first appeared in The Edge Financial Daily, on May 25, 2018.

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