Berjaya Corp posts RM134m net loss in 2Q, warns of more headwinds

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KUALA LUMPUR (Feb 26): Berjaya Corp Bhd posted a net loss of RM134.42 million in its second quarter ended Dec 31, 2019 (2QFY20), mainly due to operating expenses incurred by its property projects and income tax expense.

It also blamed the loss on further impairment on the balance of Berjaya (China) Great Mall Co Ltd sales proceeds in anticipation of a delay in recovery proceedings, as well as an impairment of certain property, plant and equipment.

Quarterly revenue came in at RM2.08 billion, its stock exchange filing showed. No comparative figures were disclosed following a change in the group's financial year-end from Apri 30 to June 30.

For its cumulative six-month period (1HFY20), Berjaya Corp posted a net loss of RM188.65 million while revenue came in at RM4.15 billion.

The group said its gaming and motor distribution business segments were the main contributors to its revenue in both the three-month and six-month periods.

In view of the recent outbreak of the novel coronavirus (COVID-19), Berjaya Corp said its hotel and resorts business segment has been directly and adversely impacted. As such, it said the segment’s performance is expected to be challenging in the following quarters.

Meanwhile, Berjaya Corp said the Government's impending plan to change the telecommunication spectrum allocation policy may affect the performance of its telecommunication business going forward.

Given the prevailing economic conditions and global financial outlook, the group said its operating environment will remain challenging.  

Its share price settled half a sen or 2.17% higher at 23.5 sen, bringing it a market capitalisation of RM1.23 billion.