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Mulpha International suffers big losses, dragged down by RM315m impairment in 3Q

KUALA LUMPUR (Nov 30): The whopping RM315.38 million impairment on its investment in an Australia-listed associate, AVEO, widened Mulpha International Bhd's net loss substantially to RM299.32 million in the third quarter ended Sept 30, 2019 (3QFY19) from RM6.65 million in the previous corresponding quarter.

The hefty impairment offset the improved performance in the hospitality and property divisions, said the company in a filing with Bursa Malaysia.

The company’s loss per share swelled to 93.69 sen for 3QFY19 from 2.08 sen for 3QFY18. Quarterly revenue, however, grew 24.9% to RM210.53 million from RM168.55 million last year due to better performance in the hospitality and property divisions.

The property division recorded a higher pre-tax profit of RM25.34 million from RM18.72 million. The division generated revenue of RM69.51 million from RM58.01 million a year ago. Mulpha attributed better performance to higher settlements in the Sanctuary Cove developments in Australia.

The hospitality division registered higher pre-tax profit of RM11.52 million compared with RM4.7 million a year ago. Revenue was higher at RM118.83 million from RM91.37 million previously. It said the division’s better performance was mainly due to the reopened Hayman Island Resort.

Its investment and other activities division recorded a pre-tax loss of RM327.1 million for 3QFY19 from RM4.98 million last year, due to the impairment loss in AVEO.

For its nine-month period, the company recorded a net loss of RM396.43 million against a net profit of RM139.8 million last year despite revenue rising 4% to RM530.77 million from RM510.36 million.

Mulpha International's counter closed 2.05% or four sen higher at RM1.99 yesterday, with 27,300 shares traded, giving it a market capitalisation of RM635.74 million.

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