Berjaya Corp posts net loss of RM155m in 3Q

Berjaya Corp posts net loss of RM155m in 3Q
Written by Joseph Chin
Wednesday, 31 March 2010 18:04

KUALA LUMPUR: Berjaya Corp Bhd posted net loss of RM155.12 million in the third quarter ended Jan 31, 2010 (3QFY10), mainly due to investment related expenses of RM162.05 million and also weaker hotels and resorts business.

It told Bursa Malaysia on Wednesday, March 31 that revenue was RM1.66 billion while pre-tax loss was RM48.75 million. Loss per share was 3.72 sen. The investment related expense surged to RM162.05 million in 3QFY10 from RM21.02 million in 3QFY09.

In the previous corresponding quarter, it made net profit of RM17.94 million on the back of RM1.73 million in revenue. Earnings per share was 0.47 sen.

BCorp said in 3QFY10 the Group recorded a decrease in revenue of 4%. This was unlike 3QFY09 where BCorp enjoyed higher sales due to the Chinese Lunar New Year festivity that fell in January 2009, resulting in high festive sales for the gaming business operated by Sports Toto (Malaysia) Sdn Bhd and the strong sales registered from the Mega 6/52 game.

"In the current financial year, the Chinese Lunar New Year festivity fell in the month of February 2010. Apart from this, the hotels and resorts business was adversely affected by cutbacks in business travels due to the global economic downturn," it said.

For the nine months ended Jan 31, 2010, it posted net loss of RM61.43 million versus net profit of RM61.50 million in the previous corresponding period. Revenue was RM4.89 billion versus RM4.83 billion.

"The increase in the current period's revenue mainly resulted from the higher contributions from the consumer marketing business and higher brokerage income (from stockbroking business), due to the more active stock market. The performance is all the more commendable as the current period did not have the benefit of the
traditional Chinese Lunar New Year festivity which was in February 2010," it said.

BCorp said excluding the non-cash equity dilution effect of RM208.69 million, the group's pre-tax profit would have been RM522.62 million, showing a 57.1% increase over the preceding year corresponding period.

This increase was mainly contributed by Cosway, (benefiting from its revamped business model from retail to free franchise hybrid outlets in Thailand, Korea and Australia, coupled with the introduction of new products and attractive monthly promotions) and the recognition of negative goodwill as well as write-back of impairment in value of investment in associated companies and other investments.

http://www.theedgemalaysia.com/business-news/162810-berjaya-corp-posts-net-loss-of-rm155m-in-3q.html