registered a revenue of RM2.23 billion in the current quarter ended 30 September 2024 compared to a revenue of RM2.57 billion in the corresponding quarter of the previous financial year. The Group also incurred a pre-tax loss of RM101.58 million in the current quarter under review as compared to a pre-tax profit of RM97.30 million in the previous year corresponding quarter.
PRESS RELEASE
BERJAYA CORPORATION BERHAD REPORTS RM2.23 BILLION REVENUE FOR
Q1FY2025 ENDED 30 SEPTEMBER 2024
Date: 28 November 2024
Venue: Kuala Lumpur
For the 1st Quarter ended 30 September 2024
Berjaya Corporation Berhad (“BCorp” or “The Group”) registered a revenue of RM2.23 billion in the current quarter ended 30 September 2024 compared to a revenue of RM2.57 billion in the corresponding quarter of the previous financial year. The Group also incurred a pre-tax loss of RM101.58 million in the current quarter under review as compared to a pre-tax profit of RM97.30 million in the previous year corresponding quarter.
Berjaya Corporation Berhad (“BCorp” or “The Group”) registered a revenue of RM2.23 billion in the current quarter ended 30 September 2024 compared to a revenue of RM2.57 billion in the corresponding quarter of the previous financial year. The Group also incurred a pre-tax loss of RM101.58 million in the current quarter under review as compared to a pre-tax profit of RM97.30 million in the previous year corresponding quarter.
The performance of the Group’s results in the current quarter under review was attributed by
the following business segments:
- Retail (Non-Food) segment recorded a lower revenue, mainly contributed by H.R. Owen Plc (“H.R. Owen”). The company reported a lower revenue in its reporting currency, the Sterling Pound and this decline was further increased when converted to Ringgit Malaysia due to unfavourable foreign exchange effects. The drop in revenue was mainly attributed to lower sales volume from the new car sector, which was impacted by the product life cycle of car models being phased out. Additionally, manufacturers’ shift towards electrification and hybrid car reengineering, coupled with challenging economic conditions and uncertain sentiments in the United Kingdom (“UK”) following the UK General Election held in July 2024 further softened sales in the current quarter under review. A pre-tax loss reported, primarily due to H.R. Owen’s reduced revenue and margin compression. This was a result of intense price competition caused by an oversupply of cars from certain manufacturers. Consequently, H.R. Owen incurred a pre-tax loss, compared to a pre-tax profit recorded in the same quarter last year, reflecting the combined impact of reduced revenue and margin compression.
- Retail (Food) segment also reported a lower revenue and a pre-tax loss, mainly due to the prolonged impact from the ongoing sentiment in relation to the Middle East conflict.
- Property segment reported a lower revenue and a pre-tax loss in the current quarter, mainly due to the completion of The Tropika Bukit Jalil project in the preceding quarter and lower sales of the residence units of an overseas project.
- Hospitality segment posted a higher revenue driven by higher overall occupancy rates during the current quarter as compared to the previous year corresponding quarter. The lower pre-tax profit reported was mainly due to the higher operating expenses incurred in the current quarter under review. Page 1 of 2 • Services segment reported a lower revenue in the current quarter, mainly due to the gaming business operated by STM Lottery Sdn Bhd having two fewer draws (40 draws compared to 42 draws in the corresponding quarter of the previous year) and lower average sales per draw, following smaller accumulated jackpot prizes in the current quarter. However, this was mitigated by higher revenue reported by the managed telecommunications network services (“MTNS”) and Cloud & Internet-of-Things (“IoT”) businesses. Additionally, a higher pre-tax profit was reported, mainly due to the higher gross profit from the MTNS business, as well as the deconsolidation effect of Singapore Institute of Advanced Medicine Holdings Ltd. These factors offset the lower pre-tax profit reported by STM Lottery.
On the consolidation basis, the Group incurred a pre-tax loss for the current quarter under
review after taking into account of fair value losses from other investments and impairment on
investment in associated companies, as well as higher foreign exchange losses incurred in the
current quarter.
Dividend
The Board did not recommend any dividend for the financial period ended 30 September 2024.
The Board did not recommend any dividend for the financial period ended 30 September 2024.
Future Prospects
Malaysia’s economic growth is expected to be driven by strong domestic demand and the moderation of average inflation rate despite the uncertainties arising from geo-political tensions. The Group will monitor the prevailing global and local political development in the countries where the Group has business operations.
The performance of the domestic business segments of the Group is expected to improve on the back of strong consumer spending and improvement in tourism activities. As for the gaming business, the closure of legal Number Forecast Operator outlets in Kedah and Perlis will result in the proliferation of illegal operators in these underserved areas.
Taking into account of the aforesaid and barring any unforeseen circumstances, the Directors are cautiously optimistic that the performance of the business operations of the Group for the remaining quarters of the financial year ending 30 June 2025 to be satisfactory.
Malaysia’s economic growth is expected to be driven by strong domestic demand and the moderation of average inflation rate despite the uncertainties arising from geo-political tensions. The Group will monitor the prevailing global and local political development in the countries where the Group has business operations.
The performance of the domestic business segments of the Group is expected to improve on the back of strong consumer spending and improvement in tourism activities. As for the gaming business, the closure of legal Number Forecast Operator outlets in Kedah and Perlis will result in the proliferation of illegal operators in these underserved areas.
Taking into account of the aforesaid and barring any unforeseen circumstances, the Directors are cautiously optimistic that the performance of the business operations of the Group for the remaining quarters of the financial year ending 30 June 2025 to be satisfactory.
For media enquiries, please contact Group Corporate Communications at corpcom@berjaya.com.my.