KUALA LUMPUR (Aug 28): YTL Corp Bhd’s net loss widened to RM252.23 million for the fourth quarter ended June 30, 2020 (4QFY20), from RM13.82 million a year earlier, as the business was hit by the Covid-19 pandemic.
Loss per share was higher at 2.39 sen against 0.13 sen for 4QFY19, the group's stock exchange filing showed.
Revenue for the quarter fell 30.77% to RM3.52 million, from RM5.09 million.
The group said it registered a loss before taxation of RM124.9 million in 4QFY20, compared with a profit before tax of RM194.2 million in 4QFY19.
However, after eliminating the losses arising from fair value changes, impairment loss and inventories write down of RM170.4 million, the group said it would have recorded a profit before tax of RM45.5 million.
For the full year, YTL Corp posted a net loss of RM189.86 million, compared with a net profit of RM242.59 million in FY19, despite revenue rising 6.2% to RM19.16 billion from RM18.05 billion.
The group said its information technology and e-commerce related business recorded lower revenue in 2QFY20 on lower revenue contribution from the content and digital media division, following the impact of Covid-19. However, the loss before tax was due to an impairment loss on goodwill.
YTL Corp said its cement manufacturing and trading segment’s revenue declined due to the contraction in domestic cement demand that was compounded by the movement control order (MCO), which resulted in the shutdown of operations during the period.
Lower revenue was also registered in the property investment and development segment, due to the deconsolidation of the results of Starhill Global Real Investment Trust (SGREIT) and lower sales recorded in the Fennel project and 3-Orchard By-The-Park project.
The higher loss before tax was attributed to the recognition of losses on sale of completed units and qualifying certificate extension fees incurred by YTL Westwood Properties Pte Ltd for the 3-Orchard By-The-Park project and share of fair value loss on investment properties recorded by SGREIT.
The group’s management services and others segment also recorded a decrease in revenue due to lower distribution income from investments and drop in the interest income, following the interest rates cut.
Despite the lower revenue, it said profit before tax was higher due to one-off gain on deconsolidation of SGREIT.
YTL Corp said the pandemic and MCO had caused its hotel segment to record a lower revenue and profit before tax.
Meanwhile, the group’s construction segment saw an increase in revenue due to the significant increase in progress of construction works. But the lower profit before tax was due to higher finance costs and overheads incurred.
In the utilities segment, the group said its power generation business posted a lower revenue due to lower energy payment recorded, but the impact on profit before tax was minimal as the plant operates under a guarantee capacity payment regime.
Similarly, the multi utilities business division recorded a lower revenue due to the drop in fuel oil price and lower retail volume recorded. However, it posted an improvement in loss before tax due to higher fuel oil tank leasing rate, higher retail and ancillary margin and lower finance costs.
The group’s water and sewage division also registered a lower revenue and profit before tax, impacted by the decrease in price determined by the regulators, coupled with higher allowance for impairment of receivables of RM62.5 million from RM26.7 million a year ago.
Its telecommunications division registered lower revenue and higher loss before tax due to lower project revenues recorded. However, the earnings before interest, tax, depreciation and amortisation was positive.
On prospects, YTL Corp said the impact of Covid-19 in the longer term cannot be accurately estimated, as there are still significant uncertainties on how and when the pandemic can be contained and for full business activities to resume.
YTL Corp’s share price slid 3.5 sen or 4.96% to 67 sen today, for a market capitalisation of RM7.14 billion. Year-to-date, the stock has fallen by 32%.
Edited by S Kanagaraju