PETALING JAYA: Berjaya Land Bhd (BLand) recorded a 41.7% increase in revenue for the fourth quarter ended June 30, 2022 to RM1.75 billion from RM1.24 billion a year ago mainly due to its gaming, hotels and resorts, property development and investment, and car business segments.
BLand said its gaming business segment operated by STM Lottery Sdn Bhd (formerly known as Sports Toto Malaysia Sdn Bhd) reported a 47.8% increase in revenue mainly due to higher number of draws conducted, which was 42 draws in the current quarter compared with 28 draws in the previous year’s corresponding quarter.
STM Lottery’s operations were impacted with the cancellation of 15 draws in the previous year’s corresponding quarter due to the third movement control order (MCO 3.0) from June 1, 2021 to Sept 13, 2021 imposed by the Malaysian government.
Additionally, the better revenue was attributable to higher overall occupancy and average room rates reported by the hotels and resorts segment, in particular from the hotels in Iceland after the easing of travel and social restrictions; higher property progress billings reported by property development and investment business segment from its project at The Tropika, Bukit Jalil; and higher sales recorded from both new and used car sectors.
BLand’s net loss for the quarter widened to RM133.44 million from RM126.34 million in the corresponding quarter last year after the provision of partial impairment on balance sale proceeds of Great Mall Project amounting to RM197.8 million, which continued Covid-19 lockdowns in China disrupted the enforcement procedures of the arbitration award.
For the full year, BLand registered revenue of RM6.05 billion compared with RM5.41 billion in the previous financial year, thanks mainly to its hotel and resorts and car businesses. Its hotel and resorts business segment reported higher overall average occupancy and room rates during the current financial year with the easing of international travel restrictions.
Its luxury motor retailer HR Owen reported 20.5% of increase in revenue from strong demand with gradual supply volume recovery and price-mix tailwinds leading to strong used car profit margin due to the earlier supply chain disruptions in the new car sector.
BLand narrowed its net loss for the year due to the higher profit from operations in line with the higher revenue reported by HR Owen and other business segments other than STM Lottery.
BLand expects the performance of the business operations of the group for the next financial year to be satisfactory, despite rising operating costs going forward.
“The global economy has started to recover as most countries in the world have transitioned into the endemic phase of the pandemic with the full resumption of business activities and the re-opening of international borders. However, the recent rise of global inflation rates caused by the reduction of commodities supplies and disruptions in supply chains, brought on by the ongoing Russia-Ukraine war and the Covid-19 lockdowns in China as well as the geopolitical tension, have certainly impacted the economic recovery rate,“ it said.