Berjaya Corporation Berhad registered a revenue of RM1.75 billion for the fourth quarter ending registering an increase of 104% from a revenue of RM859.02 million reported in the corresponding quarter of the previous year. The significantly higher revenue was largely contributed by its gaming operations Sports Toto Malaysia as well as its motor distribution business operated by H.R. Owen Plc.
The group also recorded higher revenue from its consumer marketing, food and beverage, property investment and development, and hotels and resorts business segments in the current quarter. Higher revenue from the hotels and resorts business segment was due to increased overall occupancy rate from domestic travel demands and increased “dine-in” food and beverage revenue during the CMCO. Adding to the increase was also the easing of travel and social restrictions in Iceland where the company owns hotels.
Of the rebound, Sports Toto recorded a significant increase in revenue thanks to the 28 draws conducted compared to only 6 draws last year for the quarter. However, the reimposition of MCO 3.0 resulted in the cancellation of 15 draws whilst 34 draws were cancelled in the previous year’s when when MCO 1.0 was enforced.Desrpit
Despite the better revenue, the group continued to incur loses but registered a lower pre-tax loss of RM208.10 million as compared to a pre-tax loss of RM352.57 million reported in the corresponding quarter of the previous year. The pre-tax loss in the current quarter was mainly due to the recognition of non-cash impairment in the value of certain assets however, the loses were mitigated by the profits achieved by the group’s other business segments such as gaming operations, food and beverage and consumer marketing.
For the full year, the Group registered a revenue of RM7.46 billion as compared to a revenue of RM6.99 billion reported in the previous financial year. The consumer marketing segment reported higher revenue, mainly contributed by HR Owen from the motor distribution business. This was due to higher new and used car sales with the fulfilment of backlog orders from the earlier lockdown in the UK as well as the favourable foreign exchange translation effect of converting Pound Sterling into Ringgit Malaysia.
Vietnam property investment and development segment also registered higher revenue mainly due to the completion and handing over of a mixed development project located in Dong Nai, Vietnam. The sale of overseas residence units also further contributed to the increase in revenue.
Overall the Sports Toto which contributes substantially for the group was severely dampened due to Covid-19 lockdowns where gaming shops were prohibited to open. Berjaya reported a pre-tax loss of RM189.51 million in the current financial as compared to a pre-tax profit of RM173.46 million in the previous financial year. The pre-tax loss was primarily due to the non-cash impairment of assets, both tangible and intangible, totaling about RM203.16 million.
Looking ahead, the Directors expect that the performance of the business operations of the Group for the financial year ending 30 June 2022, will move in tandem with the economy as it begins to open up both domestically and abroad.