Greetings, fellow investors and market watchers! Today, we’re diving deep into the latest financial performance of MAA GROUP BERHAD (MAAG) for its first quarter ended 31 March 2025 (3Q FY2025). This report offers a fascinating glimpse into the Group’s diversified operations, revealing a mixed bag of results but with a clear trajectory towards narrowing losses. While some segments faced headwinds, MAAG’s strategic moves appear to be yielding a significant overall improvement in its financial health. Let’s break down the numbers and see what’s truly driving MAAG’s journey.
MAAG’s Q1 FY2025 Performance: A Glimpse into the Numbers
MAAG’s continuing operations recorded a slight decrease in revenue for the current quarter but a notable improvement in profitability, cutting its losses significantly. For the nine-month period, the Group demonstrated strong revenue growth and a substantial reduction in its cumulative loss before tax.
Quarterly Snapshot (3Q FY2025 vs 3Q FY2024)
3Q FY2025
Revenue: RM26,809k
Loss Before Tax: RM(18,228)k
Loss Attributable to Owners: RM(15,951)k
Basic Loss Per Share: (6.05) sen
3Q FY2024
Revenue: RM27,254k
Loss Before Tax: RM(31,048)k
Loss Attributable to Owners: RM(29,418)k
Basic Loss Per Share: (11.15) sen
Revenue for the quarter saw a marginal decrease of 1.6% to RM26.8 million. However, the Group’s Loss Before Tax (LBT) significantly improved by 41.3%, shrinking to RM18.2 million from RM31.0 million in the same quarter last year. This remarkable reduction in loss was primarily due to a lower share of loss from equity-accounted associates, which recorded a profit of RM0.4 million this quarter compared to a loss of RM14.9 million in 3Q FY2024. This positive shift was partially offset by higher depreciation and amortisation expenses.
Cumulative Period Performance (9M FY2025 vs 9M FY2024)
9M FY2025
Revenue: RM88,183k
Loss Before Tax: RM(23,037)k
Loss Attributable to Owners: RM(20,691)k
Basic Loss Per Share: (7.85) sen
9M FY2024
Revenue: RM77,081k
Loss Before Tax: RM(57,657)k
Loss Attributable to Owners: RM(51,414)k
Basic Loss Per Share: (19.49) sen
Looking at the nine-month period, MAAG’s revenue increased by a robust 14.4% to RM88.2 million. The cumulative LBT also saw a significant improvement, reducing by 60.0% to RM23.0 million from RM57.7 million in the prior year’s corresponding period. This turnaround was largely propelled by a one-off gain on redemption of corporate debt securities amounting to RM18.9 million, alongside a reduced share of loss from equity-accounted associates.
Segmental Performance: A Closer Look at MAAG’s Diverse Businesses
MAAG operates across five key segments, each contributing uniquely to the Group’s overall performance. Let’s dissect their individual contributions:
Investment Holdings
3Q FY2025
Revenue: RM453k
Loss Before Tax: RM(9,376)k
3Q FY2024
Revenue: RM399k
Loss Before Tax: RM(24,467)k
This segment saw a 13.5% increase in quarterly revenue, mainly from higher rental income. More importantly, its LBT significantly narrowed by 61.7% for the quarter, thanks to a positive shift in the share of profit from equity-accounted associates. For the nine-month period, Investment Holdings even recorded a Profit Before Tax (PBT) of RM0.4 million, a remarkable turnaround from a RM36.3 million LBT in the prior period, largely due to the corporate debt securities redemption gain.
Education Services
3Q FY2025
Revenue: RM6,236k
Loss Before Tax: RM(3,201)k
3Q FY2024
Revenue: RM6,910k
Loss Before Tax: RM(2,121)k
The Education Services segment experienced a 9.8% decline in quarterly revenue and a 50.9% increase in LBT. This was attributed to lower revenue and higher cost of sales. The cumulative nine-month performance also showed a slight revenue decrease and a higher LBT, impacted by increased operating and finance costs.
Financial Services
3Q FY2025
Revenue: RM3,761k
Loss Before Tax: RM(82)k
3Q FY2024
Revenue: RM2,697k
Loss Before Tax: RM672k
Financial Services delivered strong revenue growth of 39.5% for the quarter and 36.7% for the nine-month period, driven by money lending and debt factoring activities. However, despite this revenue increase, the segment swung to a quarterly LBT of RM0.1 million from a PBT of RM0.7 million, and its nine-month PBT was lower. This was mainly due to significantly higher impairment losses on loans and factoring receivables.
Hospitality Services
3Q FY2025
Revenue: RM14,726k
Loss Before Tax: RM(2,853)k
3Q FY2024
Revenue: RM15,932k
Loss Before Tax: RM(2,258)k
This segment saw a 7.6% decrease in quarterly revenue, primarily from hotel rooms and renovation services, leading to a higher LBT. However, for the nine-month period, Hospitality Services recorded a healthy 13.4% revenue increase, mainly from hotel services and ‘others’ income, resulting in a lower cumulative LBT. The improvement was offset by higher cost of sales, depreciation, and impairment losses.
Cinema Services
3Q FY2025
Revenue: RM1,591k
Loss Before Tax: RM(1,890)k
