PETALING JAYA: Berjaya Land Bhd (BLand) reported a net loss of RM136.8 million for the fourth quarter ended June 30, on revenue of RM541.6 million as the earlier phases of the movement control order (MCO) in Malaysia and globally required the group to halt operations.
Sports Toto Malaysia Sdn Bhd was allowed to resume business after being closed since the imposition of MCO on March 18, which resulted in the cancellation of 34 draws in the current quarter and Sports Toto was only able to conduct six draws in the quarter under review
In the United Kingdom, HR Owen which operates the motor retailing business segment, shut down its operations from March 23 to May 31, and only resumed business operations on June 1.
The group’s hotels, resorts, clubs and recreation business segments reported significantly low single-digit average occupancy rates for the quarter under review.
“In order to mitigate the operating losses, austerity measures were taken after a review of the operations of the hotels, resorts, clubs and recreation business segment. Berjaya Tioman Resort ceased operations effective June 15 to undergo a much needed major re-development exercise, more so after the fire incident in September 2019.
“The loss adjustor has determined the final amount of claim under the fire insurance policy to be RM26 million. The group plans to reopen Berjaya Tioman Resort in 2021,” BLand said in its Bursa filing.
During the quarter, the shopping malls and complexes of the group granted a 14-day rental relief to eligible tenants who were also unable to operate during the MCO period.
As for the property development segment, the progress of ongoing development has been slightly delayed due to business closures during MCO.
BLand has recognised an impairment in values of investment properties and certain assets of RM18.9 million, offset by finance income of RM41.4 million arising from the accelerated accretion of the balance of Berjaya (China) Great Mall Co Ltd sales proceeds to its nominal value of RMB974 million.
For the full year, the group’s net loss stood at RM62.3 million, on revenue of RM5.2 billion.
Looking ahead, the group said it is confident that it will retain its market share in the number forecast operator business.
The property development business is expected to be impacted by slower property sales mainly due to the expected liquidity squeeze arising from the contraction of the economy in the short term.
“As such, the directors expect the occupancy rates and the revenue from events at the hotels, resorts, clubs and recreation business segment to remain low if the international borders remain closed.
“The incentives announced under the Short-term Economic Recovery Package in Malaysia, particularly for the hotels and resorts and property development business segments, are expected to stimulate the economic activities,” it said.
source https://www.thesundaily.my/business/berjaya-land-posts-q4-revenue-of-rm5416-million-KM3680095
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