Berjaya Times Square Hotel, Kuala Lumpur. File Photo
Berjaya Corp Bhd (BCorp) says the recent outbreak of the novel coronavirus (COVID-19) has adversely impacted the group’s hotels and resorts business segment.
The outbreak of the virus caused travel restrictions by certain countries due to the fear of infection.
"Consequently, the group’s hotels and resorts business segment have been directly and adversely impacted by this outbreak and as such, this business segment’s performance is expected to be challenging in the subsequent quarters," said BCorp.
BCorp, founded by billionaire Tan Sri Vincent Tan owns and operates several luxury to midscale brands in Malaysia, Philippines, Sri Lanka, Seychelles, Japan, and the United Kingdom via Berjaya Hotels & Resorts.
Besides hotels and resorts, the other main operating businesses of the group are marketing of consumer products and services, restaurants and cafes, property investment and development, and gaming operations.
BCorp registered revenue of RM2.08 billion for the quarter ended 31 December 2019, a bulk of which was contributed by the gaming business segment.
It reported a pre-tax loss of RM61.66 million in the current quarter under review mainly due to operating expenses incurred by the overseas and local property projects, and further impairment on the balance of Berjaya (China) Great Mall Co. Ltd (GMOC) sales proceeds in anticipation of the delay in the recovery proceedings.
In a filing with Bursa Malaysia, BCorp said the group's hotels and resorts segment reported lower revenue in the quarter ended 31 December 2019 due to lower occupancy and average room rates as compared to the preceding quarter.
"This was due to the onset of the monsoon season which affected the island resorts located on the East Coast of Peninsular Malaysia and the generally softer market conditions," it said.
As a result of lower revenue, the segment reported lower pre-tax profit as compared to the preceding quarter.
The group's property investment and development segment reported higher revenue in the current quarter mainly due to higher progress billings as compared to the preceding quarter. However, the segment contributed a higher loss in the current quarter mainly due to higher operating expenses from overseas and local projects.
For the cumulative six months period ended 31 December 2019, BCorp registered revenue of RM4.15 billion and a pre-tax loss of RM16.04 million.
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