YTL Corp’s1Q earnings plunge 88%to RM15m


YTL Corp Bhd’s net profit in the first quarter ended Sept 30, 2019 (1QFY20), plunged 87.83% year-on year (YoY) to RM15.31 million from RM125.79 million in the corresponding period a year ago due to lower earnings contribution by most of its business divisions.

Earnings per share for the three months were 0.14 sen.

The group’s cement manufacturing and trading business recorded a loss before tax of RM9.52 million in the quarter compared to a profit before tax (PBT) of RM43.5 million in 1QFY19, mainly due to higher finance costs.

The PBT of its property investment and development segment in the quarter fell 67.45% YoY to RM27.98 million from RM85.96 million in 1QFY19 on recognition of losses on sale of completed units and qualifying certificate extension fee incurred by YTL Westwood Properties Pte Ltd for 3 Orchard By-The-Park project, its exchange filing yesterday stated.

Losses at its management services and other services widened to RM9.65 million from RM5.6 million in 1QFY19, attributable to the unrealised foreign-exchange loss recorded by an offshore subsidiary after partially offsetting the fair value gain on investments and accrued technical service income.

The PBT for its utilities segment declined 58.33% YoY to RM87.14 million from RM209.12 million in 1QFY19 due to significant reduction in vesting contract level, loss on sales of fuel oil and absence of project revenue recorded by multi-utilities business and telecommunication business divisions.

For the quarter, YTL Corp’s revenue increased 29.1% YoY to RM5.28 billion boosted by higher contributions from its construction business.

Meanwhile, YTL Hospitality Real Estate Investment Trust’s net profit in 1QFY20 jumped 238.11% YoY to RM39.66 million due to unrealised foreign currency translation gain on borrowings and additional rentals from the acquisition of The Green Leaf Niseko Village and the refurbishment of JW Marriott Hotel Kuala Lumpur.

The trust’s revenue for the period was up 6% YoY to RM120.72 million.