KUALA LUMPUR (Nov 23): Only World Group Holdings Bhd (OWG) posted a 71% drop in net profit for the first financial quarter ended Sept 30, 2018 (1QFY19) to RM639,000 from RM2.17 million a year ago, owing to higher depreciation and amortisation charges, and finance costs.

In a bourse filing today, OWG noted the depreciation and amortisation charges during the quarter amounted to RM6.8 million compared to RM4.7 million in 1QFY18, while finance costs were RM2 million against RM900,000.

Earnings per share tumbled to 24 sen from 87 sen in 1QFY18.

However, revenue rose 9.3% to RM32.95 million from RM30.14 million previously, mainly driven by its amusement and recreation operations, and food services.

OWG noted that its amusement and recreation operations accounted for 45% of revenue, and food services 43%.

The amusement and recreation operations recorded an increase in revenue of RM1.7 million mainly due to the opening of four family attractions at Sky Avenue, Genting Highlands and two new family attractions at the TOP, Komtar Tower, Penang, in February 2018.

It also attributed the higher revenue contribution to aggressive promotional initiatives and more attractive pricing offered due to the three-month goods and services tax holiday starting June 1, 2018.

On its current financial year prospects, OWG said it has put in place business and expansion plans focused on opening "Fun, Food and Good Living" locations that package multiple food service outlets, family attractions and other retail outlets in a single location with a unified theme, focusing on family-centric activities.

It is also looking to open more food service outlets that expand the range of dining options at new locations.

"Premised on the above, the board is generally positive of the group's performance but cautious of the prevailing economic conditions for the financial year ending June 30, 2019," it added.

OWG closed 2 sen or 3.17% lower at 61 sen for a market capitalisation of RM169.03 million.