- TA Global posted a net loss of RM12.6 million for the second quarter ended 31 July 2015 (2Q16) , a stark difference to the RM21.2 million net profit recorded in 2Q15. Turnover for the quarter declined 47.1 percent to RM114.3 million.
- Top line was affected by lower hotel revenue due to refurbishment works as well as the absence of loan recovery income, while the overall performance was dragged down by foreign exchange loss on Singapore dollar and Canadian dollar denominated borrowings, as a result of the weakening Malaysian ringgit, in the investment holding segment.
- For the six-month period, revenue and earnings fell 31.9 percent and 41.9 percent to RM255 million and RM59.6 million respectively.
Significance: The group’s outlook for FY16 remains challenging, due to the slowdown in the Malaysia economy that is anticipated to result in weaker property sales. Furthermore, lower income contributions from the overseas and local property investments is projected, in light of expected upgrading works to be undertaken at some of these properties.
Contributed by Shares Investment
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