Berjaya Assets “Unable To Forecast” If Operations Will Return To Pre-Pandemic Level

June 5, 2020

With its hotel, gaming and hotel businesses continued to be affected by Covid-19 pandemic, Berjaya Assets Bhd (BAssets) is unsure if its business operations will return to pre-Covid-19 level.

For the quarter ended 31 March 2020, BAssets reported RM63.9 million in revenue and RM9.3 million in pre-tax loss, compared to the RM75.4 million revenue and RM4.7 million pre-tax loss registered over the same period last year, reported The New Straits Times.

The group attributed the lower revenue mainly to the cancellation by the gaming business of six draws as well as lower food and beverage sales and lower ticket sales at theme parks from the group’s hotel and recreation business segments.

Its property development and property investment segment also posted lower rental income as it provided eligible tenants who were unable to operate during the government’s movement control order period with 14-day rental relief.

Read more about how the Covid-19 pandemic will affect property prices.

“Prior to the imposition of MCO, the group’s business segments were already affected by lower sales, cancellation of events and room sales primarily due to the growing Covid-19 pandemic concerns of the general public,” it said.

Assuming the conditional MCO (CMCO) ends on 9 June, the gaming business will only have nine draws, while the theme parks will be left with around 20 business days to operate for Q4 ending 30 June 2020.

“The substantially reduced business days will adversely impact the fourth-quarter results of these companies,” it said in Bursa Malaysia filing.

And while the group’s two shopping malls – Berjaya Waterfront Complex in Johor and Berjaya Times Square Mall, Kuala Lumpur – resumed full operations during the CMCO, BAssets expects footfall to remain low as the public remains cautious of getting infected of Covid-19.

“The low footfall may create downward pressure on rental collections and revenue,” it said.

BAssets also expects its Berjaya Waterfront Hotel in Johor Baru to register low occupancy rates and revenue from events, on the back of low tourist arrivals and the new social distancing rules.

During the mandatory quarantine period, the hotel – which served as a quarantine centre for returning Malaysians from other countries – recorded room sales of RM150 per room per day.

“In view of these factors and the immense challenges created by the pandemic, the group is unable to forecast with certainty, when its business operations will return to the level prior to the Covid-19 pandemic,” said BAssets.

 

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