The Edge

Berjaya Corporation Bhd’s (BCorp) net profit for the financial year ended April 30, 2008 (FY08), more than tripled to RM595.9 million from RM178.7 million in FY07, lifted by a 264% rise in fourth quarter (4Q) earnings.

The surge in earnings was mainly due to the recognition of the gain on placements of 150 million irredeemable convertible unsecured loan stock of Berjaya Land Bhd amounting to about RM598.9 million.

However, the gain was offset by losses from impairment of goodwill, effects of dilution in subsidiary companies and impairment in value of other investments, BCorp told Bursa Malaysia yesterday.

BCorp proposed a final dividend of two sen per share (single-tier exempt dividend), bringing the total dividend for the year to nine sen per share, comprising 8.8 sen single-tier exempt dividend and 0.2 sen less 26% tax.

For FY08, its revenue surged 57% to RM3.46 billion from RM2.21 billion previously, mainly due to the consolidation of Berjaya Sports Toto Bhd (BToto) as a subsidiary effective February this year, better results from the general insurance business, and higher sales from the property and consumer marketing businesses.

For 4Q, BCorp’s net profit stood at RM235.9 million, compared with RM64.74 million a year earlier. Revenue for the quarter rose 178% to RM1.42 billion from RM512.2 million previously.

On FY09’s prospects, BCorp said: “In spite of the difficult economic conditions currently prevailing, the directors expect the group’s revenue and operating performance for the forthcoming financial year to show improvement in view of the full-year effects of consolidation of BToto and BMedia (Berjaya Media Bhd) as subsidiary companies.

“In addition, the completion of the acquisition of new hotels, Mazda motor vehicle distributorship rights and new start-ups of franchised restaurant chain businesses (Wendy’s and Papa John’s) will also contribute to the revenue growth.”