YTL Corp's quarterly net profit down 66% as business hit by Covid-19

KUALA LUMPUR (June 17): YTL Corp Bhd's net profit for the third quarter ended March 31, 2020 dropped 66% to RM29.52 million, from RM85.8 million a year earlier, mainly due to the impact of the Covid-19 pandemic which affected some of its business segments such as hotels.

Earnings per share fell to 0.28 sen from 0.8 sen, the group's filing with Bursa Malaysia showed.

Profits fell despite revenue rising 12% to RM4.81 billion from RM4.31 billion a year ago.

The group noted that its construction business recorded higher earnings as a result of significant progress in construction work.

Its cement manufacturing and trading segment recorded higher revenue due to the consolidation of Malayan Cement Bhd coupled with higher sales volume and selling price in China. However, the segment recorded lower profit before tax due to the finance costs of the acquisition of Malayan Cement.

Meanwhile, the hotels business saw lower revenue and profit before tax as it was impacted by the Movement Control Order in the final days of the quarter, YTL said.

For the cumulative nine months ended March 31, 2020, net profit fell 76% to RM62.37 million versus RM256.41 million for the previous corresponding period, though revenue rose 21% to RM15.64 billion from RM12.96 billion.

Looking ahead, YTL said the group's financial performance in the final quarter is expected to be adversely affected by the Covid-19 outbreak.

Shares in YTL closed two sen or 2.4% higher at 85.5 sen yesterday, for a market capitalisation of RM9.11 billion.

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