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Greetings, fellow investors and market watchers! Today, we’re diving deep into the latest unaudited Q3 financial report for Berjaya Corporation Berhad (BCorp), covering the period ended 31 March 2025. This report presents a fascinating, albeit complex, picture of the conglomerate’s performance, marked by significant shifts from the previous year. While the headline figures might initially raise eyebrows, a closer look reveals a strategic realignment and some promising underlying trends in key business units. Let’s break down what’s truly happening behind the numbers.
Navigating a Shifting Landscape: BCorp’s Q3 2025 Performance Unpacked
Berjaya Corporation Berhad’s Q3 2025 results show a notable shift from the strong performance of the previous year’s corresponding period, primarily due to the absence of significant one-off gains recorded last year. Despite this, the group demonstrates resilience in certain segments and a strategic focus on future growth. Let’s delve into the details.
Overall Financial Performance: A Tale of Two Periods
For the three months ended 31 March 2025, BCorp reported a revenue of RM2.54 billion, an 8% decrease compared to RM2.78 billion in the same period last year. More significantly, the group recorded a pre-tax loss of RM8.88 million, a stark contrast to the pre-tax profit of RM773.66 million in the prior year’s corresponding quarter. This swing to a loss is largely attributed to the absence of exceptional gains totalling RM652 million from subsidiary disposals and re-measurement of equity interest recorded in the previous year.
Looking at the nine-month period ended 31 March 2025, the trend continues. Revenue stood at RM6.97 billion, down 8% from RM7.58 billion last year. The group also reported a pre-tax loss of RM149.47 million for the nine-month period, compared to a pre-tax profit of RM751.65 million previously. This highlights the substantial impact of the aforementioned exceptional gains on the prior year’s profitability.
3 Months Ended 31 March 2025
Revenue: RM2,544,671k
Profit from Operations: RM94,325k
(Loss)/Profit Before Tax: RM(8,877)k
(Loss)/Profit After Tax: RM(56,417)k
(Loss)/Earnings Per Share: (1.58) sen
Compared to 3 Months Ended 31 March 2024
Revenue: RM2,780,906k
Profit from Operations: RM303,199k
(Loss)/Profit Before Tax: RM773,656k
(Loss)/Profit After Tax: RM716,348k
(Loss)/Earnings Per Share: 12.00 sen
9 Months Ended 31 March 2025
Revenue: RM6,974,275k
Profit from Operations: RM232,041k
(Loss)/Profit Before Tax: RM(149,474)k
(Loss)/Profit After Tax: RM(305,805)k
(Loss)/Earnings Per Share: (5.98) sen
Compared to 9 Months Ended 31 March 2024
Revenue: RM7,580,161k
Profit from Operations: RM478,506k
(Loss)/Profit Before Tax: RM751,654k
(Loss)/Profit After Tax: RM587,693k
(Loss)/Earnings Per Share: 10.30 sen
Segmental Performance: A Mixed Bag
Retail Segment
The retail segment presented a mixed picture. The non-food retail business, primarily driven by H.R. Owen Plc (HR Owen), saw higher revenue due to increased sales volume in both new and used car sectors, supported by new model launches and the addition of the Lotus marque. However, the unfavourable foreign exchange effect tempered the Ringgit Malaysia translation of this growth. Conversely, the food retail business experienced lower revenue due to a reduced number of Starbucks cafes and the cessation of Papa John’s Pizza operations in the Philippines. This segment also reported a higher pre-tax loss, impacted by weaker performance from Kenny Rogers Roasters and pre-operating costs for new overseas ventures.
Property Segment
Revenue from the property segment declined, mainly due to the completion of “The Tropika, Bukit Jalil” project in the previous financial year. This was partially offset by higher sales of residence units from a local project in the current quarter.
Hospitality Segment
The hospitality segment reported higher revenue, driven by an increase in the overall average occupancy rate. Despite this revenue growth, the segment recorded a higher pre-tax loss, primarily due to increased operating expenses incurred during the quarter.
Services Segment
The services segment was a strong performer, with STM Lottery Sdn Bhd (STM Lottery) leading the charge. The gaming business reported significantly higher revenue and pre-tax profit, driven by robust sales performance, particularly from an exceptional surge in the accumulated jackpot of the Supreme Toto 6/58 game, coupled with lower prize payouts. This positive performance from STM Lottery helped offset lower revenue from managed telecommunications network services (MTNS) and the deconsolidation effects of certain entities.
Current Quarter vs. Preceding Quarter: Signs of Sequential Improvement
When comparing the current quarter (Q3 2025) to the preceding quarter (Q2 2025), BCorp shows some sequential improvements. Revenue increased by 15% to RM2.54 billion from RM2.20 billion. The pre-tax loss also narrowed significantly by 77% to RM8.88 million, compared to a loss of RM39.02 million in the previous quarter. This improvement was largely due to lower impairment on investment in associated companies and a higher share of results from associates.
3 Months Ended 31 March 2025
Revenue: RM2,544,671k
Profit from Operations: RM94,325k
Loss Before Tax: RM(8,877)k
Compared to 3 Months Ended 31 December 2024
Revenue: RM2,203,551k
Profit from Operations: RM115,423k
Loss Before Tax: RM(39,019)k
Financial Position: Stability Amidst Changes
As at 31 March 2025, BCorp’s total assets stood at RM22.02 billion, slightly down from RM22.51 billion at 30 June 2024. Total liabilities also saw a minor decrease to RM13.36 billion from RM13.37 billion. Cash and bank balances increased to RM914.39 million from RM892.65 million. The net assets per share declined to 101.23 sen from 107.89 sen, reflecting the overall loss for the period.
| Financial Metric | As at 31 March 2025 (RM’000) | As at 30 June 2024 (RM’000) |
|---|---|---|
| Total Assets | 22,021,540 | 22,507,514 |
| Total Liabilities | 13,364,367 | 13,374,528 |
| Cash and Bank Balances | 914,390 | 892,654 |
| Net Assets Per Share (sen) | 101.23 | 107.89 |
Risks and Future Prospects: Cautious Optimism
BCorp acknowledges the uncertainties arising from geo-political tensions and inflationary tariffs, which could impact global and local economic conditions. However, the group remains cautiously optimistic about its future. Domestic business segments are expected to improve, driven by strong consumer spending and a rebound in tourism activities. The gaming business, a consistent performer, is anticipated to continue its growth trajectory due to the sustained popularity of its Lotto and Digit games.
The Directors are cautiously optimistic that the performance of the group’s business operations for the remaining quarter of the financial year ending 30 June 2025 will be satisfactory, barring any unforeseen circumstances. This outlook suggests a belief in the underlying strength of their diversified portfolio and ongoing strategic adjustments.
Navigating Legal Challenges
Berjaya Corporation is actively engaged in several significant legal proceedings, which could have financial implications. Here’s a brief update:
- STC Proposals Proceedings: The Federal Court has ruled in favour of BCorp and its related entities, remanding the case back to the High Court for an assessment of compensation. A judgment on the compensation sum is expected on 5 June 2025, which could provide a positive financial inflow for the group.
- GMOC Project Arbitration Proceedings: BCorp’s subsidiary, GMOC, secured a favourable arbitration award of approximately RMB974.07 million (plus interest) against Beijing SkyOcean and its guarantors. Enforcement proceedings are ongoing, with some assets already frozen. A partial recovery of RM17.50 million was made in the previous financial year, indicating progress in this recovery effort.
- Amat Muhibah Tax Dispute: A tax dispute with the Inland Revenue Board involving RM66.44 million in additional tax assessment is ongoing. While the Court of Appeal recently ruled in favour of BCorp’s subsidiary, the Attorney General Chambers has filed an appeal for leave at the Federal Court, with a hearing date fixed for 13 May 2025. BCorp’s legal advisors believe they have an arguable case.
Summary and
Berjaya Corporation’s Q3 2025 report reveals a complex financial narrative. The headline pre-tax loss is primarily a function of comparing against a previous year that benefited from significant one-off gains, rather than a deterioration of core operational performance across all segments. Indeed, the services segment, particularly gaming, continues to be a robust contributor, and non-food retail shows promising growth. The sequential improvement from the preceding quarter also offers a glimpse of positive momentum.
The ongoing legal battles, especially the STC Proposals and GMOC Project, represent potential avenues for significant financial recovery, which could bolster the group’s financial position in the future. However, the tax dispute remains a point of uncertainty that bears close monitoring.
Key points from this report include:
- The significant shift from pre-tax profit to loss is largely due to the absence of substantial one-off gains from asset disposals in the prior year’s corresponding period.
- Operational performance is mixed, with strong contributions from the gaming business and non-food retail, offsetting weaker results in food retail, property, and hospitality.
- Sequential quarter-on-quarter results show an improvement in revenue and a reduction in pre-tax loss, indicating some positive momentum.
- The group is cautiously optimistic about its future, banking on strong domestic consumer spending, tourism recovery, and the continued popularity of its gaming products.
- Ongoing legal proceedings, particularly the STC and GMOC cases, present potential future financial inflows, while the tax dispute remains a key risk.
Overall, BCorp is navigating a challenging economic environment and adjusting its portfolio. Investors should consider these underlying dynamics and strategic moves when assessing the company’s long-term trajectory.
What are your thoughts on Berjaya Corporation’s latest performance? Do you believe their strategic adjustments and focus on key growth areas will pave the way for a stronger financial future? Share your insights in the comments below!
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