This article first appeared in The Edge Financial Daily on February 14, 2018

KUALA LUMPUR: Only World Group Holdings Bhd (OWG) saw its net profit fall 5.7% to RM2.55 million in the second financial quarter ended Dec 31, 2017 (2QFY18) from RM2.71 million a year ago, on lower contribution from the food service operations segment.

Earnings per share was lower at 0.99 sen in 2QFY18 from 1.15 sen in 2QFY17. Quarterly revenue also slipped 3.3% to RM32.11 million from RM33.19 million in 2QFY17.

“The food service operations segment recorded a decrease in revenue of RM7.97 million which was attributed mainly to the temporary closure of food service outlets at First World Plaza, Genting Highlands since April 2017 in view of the ongoing Genting Integrated Tourism Plan (GITP) and Twentieth Century Fox World,” OWG said in a filing with Bursa Malaysia yesterday.

“The amusement and recreation operations segment recorded an increase in revenue of RM6.57 million which was attributed mainly to the commencement of operations of 14 family attractions at The Top, Komtar Tower, Penang in December 2016 and the new promotion initiatives launched during the long school holidays and festive season,” it added.

For the cumulative six months (1HFY18), OWG’s net profit rose 17.2% to RM4.72 million from RM4.03 million a year ago, while revenue was flat at RM62.25 million from RM61.66 million in 1HFY17.

OWG said it is generally positive on the group’s performance, but cautious about the prevailing economic conditions for the current financial period.

“OWG has in place a business and expansion plan moving forward, which is focused in opening ‘fun, food and good living’ locations that package multiple food service outlets, family attractions and other retail outlets in a single location with a unified theme, focusing on family-centric activities, and more food service outlets that expand the range of dining options at new locations.

“The plan also involves enhancing the facilities at Wet World Water Park Shah Alam via the Phase 2 expansion plan,” it added.