KUALA LUMPUR (June 27): Berjaya Land Bhd’s net loss widened to RM458.58 million in the fourth quarter ended April 31, 2016 (4QFY16), from RM418.52 million a year ago, due to higher share of losses from associated companies.
This was despite revenue rising 5.08% to RM1.7 billion, from RM1.62 billion.
The group’s full year net loss, however, narrowed to RM261.39 million, from RM382.96 million in FY15 year, with revenue improving to RM6.29 billion, from RM5.91 billion.
The group said in a bourse filing today that its equity accounted for higher share of losses from its associated companies, mainly due to the full three-month effect of equity accounting the results from Berjaya Kyoto Development (S) Pte Ltd in the current quarter.
The group incurred impairment losses of goodwill, amounting to RM373.3 million in respect of the Malaysian gaming operations, which continued to be affected by the challenging economy and regulatory environment; and amortisation of gaming rights in respect of the Philippines gaming operations, amounting to RM28.3 million.
It also incurred investments in associated companies, amounting to RM28.7 million; and impairment in value of assets held for sale, amounting to RM131.8 million; property, plant and equipment, amounting to RM16.3 million; and investments, amounting to RM9.1 million.
The group said its operating performance will continue to remain challenging in FY17.
“The performance of the hotels and resorts business is expected to remain satisfactory, whilst the property market outlook is expected to remain lukewarm,” it said.
Dampening domestic consumer spending as a result of rising costs due to prevailing economic conditions, as well as the impact of the goods and services tax (GST) and increasing illegal gaming activities, is expected to cause the gaming business environment to be challenging, even though Sports Toto Malaysia Sdn Bhd is expected to maintain its market share in the numbers forecast operator industry, the filing added.
The share price of Berjaya Land was unchanged at 70 sen today, for a market capitalisation of RM3.49 billion.