Berjaya Land 1Q net profit dn 28% at RM56m

KUALA LUMPUR: BERJAYA LAND BHD [] posted a 28% decline in net profit at RM56.08 million in its first quarter ended July 31, 2011 from RM77.89 million a year ago due to lower profit contribution from the hotels and recreation business.

It said on Thursday, Sept 22 that revenue was 2.1% higher at RM1.00 billion compared with RM978.94 million. The pre-tax profit was RM94.80 million, down 15.6% from RM112.40 million. Earnings per share were 0.04 sen compared with 0.89 sen.

'The increase in revenue was mainly contributed by the gaming business via BERJAYA SPORTS TOTO BHD []'s principal subsidiary, Sports Toto Malaysia Sdn Bhd and the higher property sales registered by the property development business.

Berjaya Land said the drop in group pre-tax profit for the quarter under review was mainly due to the lower profit contribution from the hotels and recreation business due to lower occupancy rates resulting from lower tourist arrivals and lower sales from the MICE sector.

There was also an impairment of available-for-sale quoted equity investments and unfavourable changes in fair values of quoted equity investments.

However, the decline was partly mitigated by the higher profit contribution registered by the gaming business mainly attributed to lower prize payout compared to a year ago and the gain on disposal of a subsidiary company.

'In addition, the preceding year corresponding quarter's results included an exceptional gain on disposal of an associated company amounting to about RM53.2 million,' it said.

Berjaya Land sinks into red with 4Q net loss

KUALA LUMPUR: BERJAYA LAND BHD [] went into the red in the fourth quarter ended April 30, 2011 with net losses of RM4.68 million compared with net profit of RM72.07 million a year ago due various factors including impairments and loss on disposal of certain quoted investments.

It said on Monday, June 27 that revenue fell 5.83% to RM1.062 billion from RM1.128 billion. Loss per share was 0.09 sen compared with earnings per share of 1.44 sen.

'The group recorded revenue of RM1.06 billion and a pre-tax profit of RM105.1 million in the current quarter ended April 30, 2011 as compared to revenue of RM1.13 billion and a pre-tax profit of RM161.2 million reported in the preceding year corresponding quarter,' it said.

BLand said the lower revenue was mainly due to the lower property sales from the property development business.

'The drop in pre-tax profit for the quarter under review was mainly due to the impairment in value of certain property, plant and equipment and quoted investments coupled with loss on partial disposal of equity interest in a subsidiary company and certain quoted investments, as well as share of losses from jointly controlled entities,' it explained.

The board has recommended a final dividend of 1.0 sen per ordinary share of 50 sen each less 25% income tax

For the financial year ended April 30, 2011, its earnings fell 28.1% to RM80.44 million from RM111.96 million. Pre-tax profit dipped to RM458.57 million from RM465.79 million. Revenue was marginally higher at RM4.06 billion versus RM4.05 billion.

The lower pre-tax profit was mainly due to lower profit contribution from BERJAYA SPORTS TOTO BHD [] as its principal subsidiary, Sports Toto (Malaysia) Sdn Bhd, was adversely affected by the increase in Pool Betting Duty from 6% to 8% effective June 1, 2010 and higher prize payout.

This impact was mitigated by the reduction in the 4D Big Special Prize effective Dec 15, 2010. In addition, certain resorts of the group which are upgrading certain category of rooms incurred higher charge out of room refurbishment expenditure this year.