Only World Group 4Q net profit up 13%

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KUALA LUMPUR (Aug 27): Only World Group Holdings Bhd (OWG) saw its net profit rise 12.87% to RM307,000 in the fourth financial quarter ended June 30, 2018 (4QFY18) from RM272,000 a year ago.

The group attributed this to higher revenue, higher earnings before interest, tax, depreciation and amortisation (EBITDA) and inclusion of allowance for impairment losses on goodwill on consolidation of RM2.38 million.

Earnings per share was, however, flat at 0.11 sen, the group said in a filing to Bursa Malaysia.

Quarterly revenue jumped 55.74% to RM35.87 million, from RM23.03 million previously, contributed mainly by the amusement and recreation operations segment and services segment.

The amusement and recreation operations segment recorded an increase in revenue of RM10.36 million due mainly to the full quarter impact of the opening of four family attractions at Sky Avenue, Genting Highlands and two new family attractions at the TOP, Komtar Tower, Penang in February.

"The higher revenue is also contributed by the aggressive promotion initiatives launched during school holidays and the festive season and more attractive pricing offered with the abolishment of the Goods and Services Tax," said OWG.

The group said its other services segment recorded a year-on-year increase in revenue of RM5.05 million in the fourth quarter, due mainly to the full quarter impact of the operation of three new retail and beauty salon outlets at Sky Avenue, Genting Highlands in December 2017 and one new outlet at Komtar Tower in January 2018.

Included in the previous fourth quarter's revenue is a reclassification of revenue for the year ended June 30, 2017 of RM3.60 million to other income, the group added.

For the full FY18, OWG's net profit rose 17.2% to RM6.36 million, from RM5.42 million a year ago, while revenue was higher by 13.24% at RM131.59 million from RM116.20 million in FY17.

OWG said it is generally positive of the group's performance but cautious of the prevailing economic conditions for the current financial period.

OWG shares closed two sen or 1.75% lower at RM1.12 today, with 478,000 shares done, bringing a market capitalisation of RM299.15 million.