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Berjaya Corp posts second straight quarterly loss in 2QFY18

KUALA LUMPUR (Dec 28): Berjaya Corp Bhd (BCorp), controlled by tycoon Tan Sri Vincent Tan, posted its second straight quarterly loss today, mainly due to provision for the impairment of a portion of the balance sales proceeds from the sale of the Great Mall of China project in China and the loss arising from the partial disposal of an associated company.

The group made a net loss of RM145.99 million in the second financial quarter ended Oct 31, 2017 (2QFY18) compared with a net profit of RM176.51 million a year ago.

It posted a loss per share of 2.54 sen compared with earnings per share of 3.27 sen in 2QFY17.

Quarterly revenue fell 11.1% to RM2.19 billion in 2QFY18 from RM2.46 billion in 2QFY17, on lower contribution from the retail distribution and motor distribution businesses, as well as property investment and development business segment.

The Great Mall project in Sanhe City, Hebei Province in China spans across 306,260 sq m of land, with 1.21 million sq m of gross floor area. The land use rights of the project were granted for a term expiring on Jan 25, 2045 for commercial, entertainment and commercial (car park) uses.

In a statement today, BCorp said the retail distribution business was affected by the weak consumer sentiment coupled with the intense competition in the local and overseas markets.

"The motor distribution business under HR Owen PLC also reported lower revenue due to the softening demand in the UK car market, as well as the product life cycle of the car models available for sale," it added.

BCorp's property investment and development business also registered lower revenue in 2QFY18 because of a much reduced contribution from the group's foreign projects in the current quarter under review.

"However, the reduced revenue from the retail distribution business and motor distribution business was mitigated by higher revenue recorded by other segments," it said.

The group recorded higher revenue from the hotels and resorts business, mainly due to higher overall occupancy and average room rates, while the higher revenue from the restaurants and cafes business was mainly due to additional cafes operating in the current quarter. The gaming operations also recorded higher revenue in both Malaysia and Vietnam.

For the cumulative six months (6MFY18), it posted a net loss of RM189.38 million from a net profit of RM113.83 million a year ago. Revenue dropped 6.4% to RM4.38 billion from RM4.68 billion.

Given the prevailing economic conditions and global financial outlook, BCorp is of the view that the group's operating environment will be challenging going forward.

BCorp shares closed half a sen or 1.41% lower at 35 sen today, with 4.7 million shares traded, for a market capitalisation of RM1.71 billion. — theedgemarkets.com

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