- Despite registering a 7.1 percent rise in 1Q16 turnover to RM1.5 billion, Berjaya Land’s net profit declined 73.7 percent to RM9.9 million.
- Top line growth was attributed to higher revenue from the group’s car dealership company, favourable foreign exchange effect and higher progress billings from property development.
- On the other hand, bottom line was weighed down by poorer performance in the firm’s gaming unit due to higher prize payout coupled with the absorption of goods and services tax as well as lower revenue from hotels and resorts business and higher finance costs.
Significance: Looking ahead, Berjaya Land expects the gaming business to be challenging, given cautious domestic spending. However, performance of the group’s hotel and resorts business is likely to remain satisfactory, while the focus of the property development business will be on overseas developments.
Contributed by Shares Investment
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