KUALA LUMPUR: Berjaya Assets Bhd (BAssets) has continued its profitability streak in the third financial quarter ended March (3QFY15), with earnings of RM18.96 million or 1.7 sen per share, on higher profit contribution from its gaming, property development and investment business segments.

In comparison, the group posted a net loss of RM12.25 million or 1.1 sen loss per share in 3QFY14. It swung back to profitability in the subsequent quarter (4QFY14), making the latest quarter its fourth consecutive profitable quarter.

Revenue for 3QFY15 was, however, slightly weaker at RM106.09 million compared with RM106.54 million a year ago.

For the cumulative nine-month period (9MFY15), BAssets (fundamental: 0.85; valuation: 1.2) saw its net profit grow 217.29% year-on-year (y-o-y) to RM66.6 million or 5.98 sen a share from RM20.99 million or 1.89 a share in 9MFY14.

This was despite revenue falling by a marginal 1.08% to RM309.54 million from RM312.93 million in 9MFY14.

BAssets was picked as the Insider Asia’s Stock of the Day on Nov 7 last year.

In a filing with Bursa Malaysia yesterday, BAssets noted that its gaming business segment operated by Natural Avenue Sdn Bhd (NASB) reported a 4% y-o-y decrease in revenue despite having the same number of draws.

“This was mitigated by higher rental income from property development and investment business segments,” it added.

BAssets said NASB reported higher profit contribution, from lower prize payout despite having lower revenue.

“The property development and investment business segments also reported higher profit contribution from higher rental income,” it added.

Going forward, BAssets expects the property investment and hotel and related businesses operated by Berjaya Times Square Sdn Bhd and the gaming business operated by NASB to maintain occupancy rates and market share respectively.

This is despite the group foreseeing that the implementation of the goods and services tax, falling crude oil prices and the lacklustre performance of the tourism industry may have an impact on the country’s economy.

“The directors envisage that the operating performance of the group for the remaining financial quarter of the financial year ending June 30, 2015, will be challenging,” it added.

BAssets closed unchanged at 82 sen yesterday, bringing a market capitalisation of RM912.69 million.

This article first appeared in The Edge Financial Daily, on June 2, 2015.