Berjaya Land returns to the black in 2Q with RM84 mil net profit

• The higher six-month revenue was mainly due to higher contribution from the gaming segment, higher property progress billing reported by the property development and investment segments, as well as the hotels and resorts segment’s higher overall occupancy and average room rates.

KUALA LUMPUR (Feb 23): Berjaya Land Bhd (BLand) returned to the black in the second quarter ended Dec 31, 2022 (2QFY2023) with a net profit of RM84.39 million, versus a net loss of RM23.93 million a year earlier, extending its profitability streak for the second consecutive quarter.

The group’s earnings, which translates into an earnings per share of 1.71 sen compared to a 0.49 sen loss per share previously, was due to dividend distribution received from an associated company in excess of its carrying value amounting to RM105.9 million as well as higher revenue.

Quarterly revenue increased 18.44% to RM1.69 billion from RM1.43 billion in 2QFY2022, underpinned by higher contributions from the group's gaming, hotel and resorts, and property development and investment segments.

For the first six months of FY2023, BLand posted a net profit of RM92.84 million versus RM98.23 million in the same period of DY2022, as cumulative revenue surged 42.17% to RM3.4 billion from RM2.39 billion.

The higher six-month revenue was mainly due to higher contribution from the gaming segment, higher property progress billing reported by the property development and investment segments, as well as the hotels and resorts segment’s higher overall occupancy and average room rates.

On its outlook, BLand said that while the world has transitioned into the endemic phase of Covid-19, the recent rise in inflation rates, the ongoing Russia-Ukraine war, as well as geopolitical tensions have impacted the economy’s recovery rate.

Against this backdrop, the group assured that it remains cautiously optimistic that its performance in the second half of the financial year will be satisfactory, despite having to bear rising operating costs.

Shares in BLand ended unchanged at 28 sen on Thursday (Feb 23), giving the group a market capitalisation of RM1.4 billion.