business

BCorp posts sixth consecutive quarterly net loss due to lockdown impact on gaming operation

KUALA LUMPUR: Berjaya Corp Bhd (BCorp) registered its sixth consecutive quarterly net loss due to the impact of the lockdown on its gaming operation under Sports Toto Malaysia Sdn Bhd.

BCorp posted a higher net loss of RM59.31 million in the first quarter ended (Q1) September 30, 2021, from RM58.95 million a year ago.

However, the loss was partly cushioned by the share of better results from other associates and joint ventures.

The company's revenue also fell 28.68 per cent in Q3 2021 to RM1.39 billion from RM1.94 billion last year.

The quarter saw the company feeling the brunt of the lockdown measures, which affected most of its business operations, particularly its gaming operations.

Nevertheless, as a result of the company's geographical diversity in its businesses, this was mitigated by the higher sales performance achieved by the motor distribution business operated by H.R. Owen PLC (HR Owen) in the United Kingdom, and the hotels and resorts business in Iceland, the company in a statement said.

BCorp's gaming operations, Sports Toto, reported a significant drop in revenue mainly due to the cancellation of 37 draws in the current quarter.

Only eight draws were conducted in the current quarter compared to 42 draws in the previous year's corresponding quarter. In addition, due to the nationwide lockdown, all Sports Toto sales outlets were temporarily closed from June 1, 2021, to September 13, 2021.

The sales outlets were only allowed to resume business operations on September 14, 2021, following the National Recovery Plan (NRP).

BCorp is cautiously optimistic that, with the easing of travel and social restrictions, the performance of the business operations for the remaining quarters of the financial year ending June 30, 2022, is expected to recover expeditiously as more business sectors have resumed full operations.

BCorp chief executive officer Jalil Rasheed said while the company's hotel business was severely hit due to travel restrictions, BCorp is optimistic that there can be recovery if our borders open.

"Iceland opened up without quarantine, and this doubled occupancy and increased average room rate for our 14 hotels there. 

"We look forward to Malaysia opening up so that tourism can start recuperating, and with that, our hotels and resorts business," said Jalil.

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