KUALA LUMPUR: Mulpha International Bhd's net profit for the third quarter ended Sept 30, 2014 (3QFY14) jumped over four-fold or 408% to RM44.05 million from RM8.67 million in the previous corresponding quarter, mainly due to higher contributions from its property and investment segments.

Consequently, basic earnings per share shot 415% to 2.06 sen, from 0.4 sen.

Revenue for 3QFY14 also jumped 67.75% to RM296.8 million from RM176.93 million in 3QFY13, the group's filing to Bursa Malaysia today showed. 

This was boosted by a 130.9% jump in its property division's revenue at RM191.23 million from RM82.83 million a year ago, which saw a pre-tax profit of RM61.96 million, up 41.9% from 3QFY13's RM43.66 million. This is due mainly to higher revenue from its Leisure Farm project in Iskandar Malaysia and a gain on disposal of Raintrees Residences, a five-storey building comprising 12 condominium units.

Its hospitality division, however, saw its pre-tax loss expand 10.9% to RM16.08 million from 3QFY13's RM14.5 million, despite an 11.3% higher in revenue at RM104.77 million from RM94.10 million, after excluding discontinued operations. 

The increase in revenue was mainly due to better occupancy and overage room rates in Intercontinental Sanctuary Cove and its One&Only Hayman Island in Australia.

"The overall financial results of the hospitality division were however, lower mainly due to the impact of the initial high operating costs related to the One&Only Hayman Island, which reopened in July 2014 after a temporary closure for major refurbishment," said the group.

Meanwhile, its cumulative nine-month financials (9MFY14) showed a net profit of RM48.97 million compared to a net loss of RM74.23 million, while revenue was up 18.1% to RM601.53 million from RM509.4 million.

The group said the overall improved performance was due to a higher contribution from an associated company, AVEO Group in Australia, which amounted to RM28.27 million, compared to a net loss previously of RM103.41 million.

A stronger performance from its property segment and in its investment and other segments also contributed to the improved financials, the group said.
On prospects, the group said it will continue to rationalise its portfolio of assets by disposing of non-core assets and reinvesting in existing core ones.

"We remain optimistic that the group is well positioned for future growth opportunities based on its strong balance sheet in particular owning prime hotels and development assets straegically located across Malaysia, Australia and [the] United Kingdom.

"Barring any unforeseen circumstances, the Group's performance for the financial year ending 31 December 2014 is expected to be satisfactory," it added.

Mulpha's counter closed unchanged at RM0.405 today, giving it a market capitalisation of RM864.15 million.