YTL Corp’s 2QFY23 net profit rebounds sharply as hotels, utilities segments improve

• YTL Hospitality Real Estate Investment Trust's (YTL REIT) net property income (NPI) rose to RM66 million in 2QFY23 from RM55 million in the preceding quarter, while income available for distribution increased to RM27 million from RM17.8 million.

KUALA LUMPUR (Feb 23): YTL Corp Bhd’s net profit jumped to RM96.91 million in the second quarter ended Dec 31, 2022 (2QFY23) from RM2.04 million a year ago, after its hotels segment returned to the black with RM49 million profit from a RM32 million loss while profit in the utilities segment grew stronger to RM214 million from RM139 million.

Earnings per share shot up to 88 sen from two sen, the group’s bourse filling on Thursday (Feb 23) showed. Revenue, however, went down 3.78% to RM6.59 billion from RM6.85 billion in 2QFY22.

For the first six months of its financial year ending June 30, 2023 (6MFY23), YTL Corp’s net profit grew 24.5% to RM133.5 million from RM107.3 million in the previous year. Revenue also strengthened 9.78% to RM13.1 billion from RM11.9 billion.

Under its core business which is the utilities segment, YTL Corp said there was a decrease in revenue for the power generation division due to the lower pool prices but profit before tax increased from higher retail prices.

The telecommunications division also experienced lower revenue and higher loss before tax due to lower project revenue.

“The group expects the performance of its business segments to remain resilient as these segments’ operations are substantially essential in nature. The group will continue to closely monitor the related risks and impact on all business segments,” YTL Corp wrote in terms of overall prospect.

Its utility subsidiary YTL Power International Bhd’s net profit jumped more than 10 times to RM198.8 million from RM18.79 million in 2QFY23, although revenue fell 7.9% to RM4.7 billion from RM5.1 billion. Earnings per share rocketed to 2.45 sen from 0.23 sen.

For the first half of FY23, net profit jumped almost seven times to RM372 million from RM54 million in the previous corresponding period, revenue also soared 10% to RM9.45 billion from RM8.62 billion.

The net profit of Malayan Cement Bhd, which YTL Corp acquired in May 2019, dropped more than three times to RM15.3 million in 2QFY23 compared with RM54.9 million a year ago. For the six-month period, net profit dropped almost half to RM16.2 million compared with RM31.2 million a year ago.

In terms of quarterly revenue, Malayan Cement achieved 9.25% higher at RM897 million from RM821 million the previous year. Half-year revenue grew 58% to RM1.76 billion from RM1.11 billion.

Quarterly revenue increased due to the increase in domestic cement selling price but quarterly profit decreased due to the increase in production costs particularly coal and electricity, the group said.

Meanwhile, YTL Hospitality Real Estate Investment Trust's (YTL REIT) net property income (NPI) rose to RM66 million in 2QFY23 from RM55 million in the preceding quarter, while income available for distribution increased to RM27 million from RM17.8 million.

The REIT’s NPI increased 10% to RM124.4 million for the half-year under review compared with RM113.5 million recorded in the same period last year. Income available for distribution grew 62% to RM57.9 million for the current period from RM35.7 million last year.

In a separate statement, Tan Sri Francis Yeoh Sock Ping, executive chairman of Pintar Projek Sdn Bhd, the manager of YTL REIT, said: “In our hotels segment, the performance of the Australian properties improved as a result of the reopening of Australia’s international borders in the beginning of 2022 which revived the demand from corporate and leisure markets.

“As for our property rental segment, revenue and NPI from the Malaysian and Japanese properties approximated that of the same period last year.”

Share price of YTL Corp on Thursday dropped half a sen to 55.5 sen, valuing the group at RM6.17 billion. YTL Power’s shares decreased half a sen to 73.5 sen, valuing the group at RM5.96 billion.

Malayan Cement’s shares rose five sen to RM2.40, valuing the group at RM3.14 billion. YTL REIT unit price dropped 1.5 sen to 99.5 sen, valuing the group at RM1.69 billion.