KUALA LUMPUR (Aug 26): Berjaya Land Bhd (KL:BJLAND) reported a net loss of RM79.91 million for its fourth quarter ended June 30, 2024 (4QFY2024), compared to a net profit of RM51.91 million a year earlier, amid higher operating costs incurred by its business segments and associated companies.

Berjaya Land said its performance was hit by a lower profit contribution from luxury motor retailer HR Owen plc, which faced increased operating costs and depreciation following the completion and full operation of the Hatfield Centre in May 2023.

The group also had to contend with higher operating and energy costs across other business segments, rising finance costs from additional borrowings and higher interest rates, as well as unfavourable foreign currency translation effects.

There was also an additional impairment of RM73.2 million on the balance of sale proceeds from the Great Mall Project, compared to RM99.8 million in 4QFY2023, Berjaya Land said in a filing with Bursa Malaysia on Monday.

The group posted a loss per share of 1.63 sen for the quarter, compared with earnings per share of 1.05 sen a year earlier.

Quarterly revenue edged up 0.72% to RM1.96 billion from RM1.94 billion in 4QFY2023, on the back of higher sales per draw reported by the group's subsidiary STM Lottery Sdn Bhd, coupled with an additional draw conducted in the quarter (41 draws versus 40 previously).

The group's hotels and resorts business also reported higher revenue, driven by an increase in overall occupancy rates during the quarter, which was bolstered by a rise in tourist arrivals and visa exemptions for certain countries.

Berjaya Land did not declare any dividend during the quarter.

For the full financial year, Berjaya Land posted a net loss of RM90.20 million, a reversal from FY2023’s net profit of RM147.30 million, despite a 4.63% increase in revenue to RM7.61 billion from RM7.27 billion.

Looking ahead, Berjaya Land said it expects its domestic business segments to improve, supported by strong consumer spending and an uptick in tourism activities.

However, it expressed concern over the impact of the closure of legal number forecast outlets in Kedah and Perlis, which may lead to a rise in illegal operators in these areas for its gaming business.

“Taking into account the aforesaid and barring any unforeseen circumstances, the directors are cautiously optimistic that the performance of the group’s business operations for the financial year ending June 30, 2025, will be satisfactory,” it added.

Shares in Berjaya Land closed half a sen or 1.45% lower to 34 sen ahead of the quarterly result announcement on Monday, for a market capitalisation of RM1.67 billion.