BCorp records RM412m profit for 3Q, supported by gain from sale of Four Seasons Kyoto

KUALA LUMPUR (June 16): Berjaya Corp Bhd (BCorp) posted a net profit of RM412.52 million for its third quarter ended March 31, 2020 (3QFY20), on a revenue of RM1.98 billion, helped by a one-off gain from the sale of its stake in the Four Seasons Hotel & Hotel Residences Kyoto in Japan.

Earnings per share for the quarter came in at 7.03 sen, its stock exchange filing showed.

While no comparative figures were provided following its change of financial year end to June 30 from April 30, the group said it registered lower revenue and lower gross contributions following the pandemic-driven lockdowns worldwide, which were insufficient to offset fixed operating costs.

In particular, the implementation of the Movement Control Order (MCO) in Malaysia resulted in the cancellation of six draws by Sports Toto, BCorp said, while HR Owen has shut its operations since March 23 in the United Kingdom, following the start of a lockdown there.

"Prior to the imposition of the global lockdown, the group's hotels and resorts business segment was affected by lower sales, cancellation of events and room sales primarily due to the growing concerns and uncertainties created by the Covid-19 pandemic. As for restaurants and cafes business segment and retail distribution business, the group experienced reduction in sales and registered negative same-store-sales growth for the current quarter," it added.

In addition, shopping malls and complexes owned by BCorp also granted a 14-day relief to all eligible tenants who were unable to operate during the MCO.

BCorp has also decided to start amortising its intangible asset of telecommunication licences with allocated spectrum over 24 months until December 2021, because of the government's impending plan to change its telecommunication spectrum allocation policy. "In addition, the hotels and resorts business segment has written off about RM7.06 million in respect of certain property, plant and equipment which were destroyed in a fire at Berjaya Tioman Beach Resort, Pahang," it said.

But the conclusion of its stake disposal in the Four Seasons Hotel & Hotel Residences Kyoto provided it with a net gain of RM662.11 million during the quarter. "This exceptional gain has helped the group to surpass all the above-mentioned negative impacts," it said.

For the cumulative nine months ended March 31,2020, BCorp booked a net profit of RM223.87 million on a revenue of RM6.13 billion.

On prospects, the group said its number forecast operations (NFO) are allowed to operate from yesterday onwards. As such, it is cautiously optimistic that its gaming business will recover given that the NFO industry has been fairly resilient in past economic crises.

But moving forward, it expects footfall at its shopping malls to be lower on concerns over Covid-19 and new social-distancing rules, while its hotels and resorts business will continue to be affected. Hence, the group warned that its performance for the remaining quarter of FY20 will be adversely impacted.
BCorp shares finished unchanged at 18.5 sen yesterday, giving it a market capitalisation of RM964.76 million.

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