Berjaya Land Recorded Huge Losses

I chuckled when I saw Berjaya Land earnings. I remembered this stock so well. On October 17, 2007 I wrote Berjaya Land Is A Growth Story?

I was amazed because Berjaya Land had a RATHER POOR earnings history but yet the analyst decided to proclaim the growth story in Berjaya Land.

• In 2003, it earned 134 million
  In 2004, it earned 94 million.
  In 2005, it earned 67.5 million
  In 2006, it earned 89.1 million.
  In 2007, it earned 32.3 million! (Where the growth story??)

Past other postings.

• What's to happen to Berjaya Land's Growth Story?
• More interesting Stuff at Berjaya Land
• Everything's Ok for Berjaya Land, so says ...

On 21 March 2009, I wrote two postings on Berjaya Land describing what was happening.

• Looking Back At Berjaya Land: Part I
• Looking Back At Berjaya Land: Part II

Berjaya Land had recorded two consecutive quarters of losses by March 2009. LOL! Where's the growth story?

Today Berjaya Land announced another set of losses!

Note: The previous year 'impressive' earnings were all boosted by several 'one off' gains. (do refer Looking Back At Berjaya Land: Part I and Looking Back At Berjaya Land: Part II )

Now the company DID give a lengthy reasoning for their poor peformance.

• The Group recorded a revenue of RM973.2 million and a pre-tax profit of RM26.9 million in the current quarter ended 30 April 2009 as compared to a revenue of RM1.0 billion and a pre-tax profit of RM634.9 million reported in the preceding year corresponding quarter. The lower revenue was mainly due to the lower revenue contribution from the gaming business operated by Sports Toto Malaysia Sdn Bhd ("STMSB"), a principal subsidiary of BToto. In the corresponding quarter ended 30 April 2008 STMSB had the benefit of traditionally higher sales from the Chinese Lunar New Year festival that fell in February 2008. The hotels and resorts division of the Group also reported lower revenue mainly due to the prevailing economic crisis that had adversely affected the hospitality industry. Further, the property development division reported lower property sales mainly due to the soft property market.
  
  The lower pre-tax profit in the current quarter under review was mainly due to:
  
  (i) lower revenue from the hotels and resorts business arising from lower room sales;
  (ii) lower property sales registered by the property development division;
  (iii) impairment in values of certain investments in associated companies, jointly controlled entities and property, plant and equipment as well as quoted shares due to the stock market downturn as detailed in Note A4(i);
  (iv) higher share of losses of jointly controlled entities that the Group had equity accounted for; and
  (v) higher foreign exchange losses arising from translation.
  
  In the previous year corresponding quarter, the Group recorded a total net exceptional gain of RM580.5 million mainly arising from the placement of 150 million of 5% ICULS 1999/2009 amounting to approximately RM598.9 million.
  

The nice stock performance.