Berjaya Assets posts Q3 revenue of RM63.9m

PETALING JAYA: Berjaya Assets Bhd reported a net loss of RM12.27 million for its third quarter ended March 31, against a net profit of RM2.33 million reported in the corresponding quarter of the previous year, attributed to lower revenue, and equity accounting for share of losses from its associated companies and joint ventures during the quarter.

Revenue stood at RM63.85 million, a 15.3% decline from RM75.43 million reported previously.

This was primarily from the cancellation of six draws by the gaming business operated by Natural Avenue Sdn Bhd (NASB), lower food and beverage sales, and lower sales of theme park tickets from the hotel and recreation business segments and lower rental income, mainly due to the 14-day rental relief granted to its eligible tenants, who were also unable to operate during the movement control order (MCO) period.

Prior to the imposition of MCO, the group’s business segments were already affected by lower sales, cancellation of events and room sales primarily due to the growing Covid-19 pandemic concerns of the public.

For the nine month period, it reported a net loss of RM7.94 million, and revenue of RM210.58 million.

According to the group’s Bursa disclosure, it noted that its gaming and theme park businesses are still not allowed to operate, even as Malaysia had eased into a conditional MCO (CMCO) period from May 4 to June 9.

“Based on the assumption that the CMCO ends on June 9, and that all business operators are allowed to resume operations with the implementation of SOPs from June 10 onwards, NASB will effectively have only nine draws and the theme park operations will have about 20 business days during the fourth quarter.

“The substantially reduced business days will adversely impact the fourth quarter results of these companies,” it said.

Furthermore, the group expects footfall in shopping malls will remain low as the public is still wary of Covid-19, despite the implementation of preventive SOPs, which may create downward pressure on rental collections and revenue. Similarly, it also expects the occupancy rate of its hotel business to be affected by low tourist arrivals and social distancing rules, as well as lower revenue from events during the pandemic.

“In view of the above factors and the challenges created by the pandemic, the group is unable to forecast with certainty, when its business operations will return to the level prior to the Covid-19 pandemic,” it said.

source https://www.thesundaily.my/business/berjaya-assets-posts-q3-revenue-of-rm639m-AE2512615