Berjaya Assets Bhd saw its net profits decline 90.8 percent year-on-year in the third quarter ending March 31, 2018, down to RM16.6 million (US$4.2 million), local media reports.
The earnings decline was due mainly to the reversal of taxes in dispute amounting to RM 156.5 million, which was reversed in the previous corresponding quarter of 2017.
The company also saw lower contribution from its business segments overall, and higher operating expenses.
Quarterly revenue fell 12.2 percent to RM 76.6 million, down from RM 87.2 million in 2017.
“The lower group revenue was mainly due to the gaming business segment operated by Natural Avenue Sdn Bhd (NASB) which continued to be impacted by rampant illegal gaming activities,” said the company in a filing.
The company is the developer of Berjaya Times Square, one of Malaysia’s largest retail and commercial projects, and also operates a hotel and ferry terminal. Through Natural Avenue Sdn Bhd, the company also is the exclusive agent for Sarawak Turf & Equestrian Club which operates the number forecast business in Sarawak.
“The hotel and recreation business segment’s revenue was slightly lower compared with the previous year corresponding quarter due to lower occupancy rates and lower average room rates charged,” it added.
Berjaya said it expects the remainder of the financial year ending June 30, 2018, to be challenging, but says it expects its property investment, hotels, and gaming business to maintain occupancy rates and market share.