PETALING JAYA: A RM94.9 million loss from YES mobile broadband business caused YTL Corp Bhd’s earnings for 1Q ended Sept 30, 2011 to decline 9.7% year-on-year (y-o-y). Profit attributed to shareholders came in at RM251.83 million from RM278.9 million after taking in smaller numbers from YTL Power International Bhd.
“This is not unexpected, given the nature of the business and the front-loaded capital outlay required to build our nationwide network,” group managing director Tan Sri Francis Yeoh said in a statement, adding that the business would turn in profit once scale is attained.
Revenue rose marginally to RM4.54 billion from RM4.41 billion, even though performance at cement processing and other utility divisions held up well.
The group said it is in the final stage of ongoing rationalisation of its retail and hospitality division with the acquisitions by Starhill Real Estate Investment Trust (Starhill REIT) of its eight hotels, including the Ritz-Carlton Kuala Lumpur, the Vistana chain of hotels, as well as the Pangkor Laut, Tanjong Jara and Cameron Highlands luxury resorts.
“Internationally, the trust is in the process of completing its acquisition of Hilton Niseko in Japan. In addition, the group completed the restructuring of its property development business on Nov 4,” he said.
YTL Power’s net profit fell to RM246.2 million for the quarter compared with RM272.9 million last year. Revenue, however, grew by 4.4% to RM3.64 billion from RM3.48 billion, mainly due to better performance of its merchant multi-utility businesses.
“The group’s established utilities business, comprising power generation and power transmission in Malaysia, Singapore, Indonesia and Australia, water and sewerage services in the United Kingdom and merchant multi-utility businesses in Singapore, continued to perform steadily during the quarter,” the group said in a statement.
Another subsidiary, YTL Cement Bhd, recorded a 4.4% increase in earnings to RM75.8 million for 1QFY12 ending June 30, although revenue rose 17.6% to RM544.7 million (y-o-y).
Property development arm YTL Land & Development Bhd saw a fall in net profit to RM2.9 million for 1QFY12 versus RM3.2 million last year. Revenue declined to RM3.4 million from RM14 million, owing to “timing differences of project launches” and higher operating expenses, it said.
YTL E-Solutions Bhd recorded a RM9 million net profit for 1QFY12, compared with RM2.2 million last year, with revenue doubling to RM20.8 million from RM9.2 million. It attributed growth to the fee income derived from a spectrum sharing agreement in relation to its 2.3 GHz Worldwide Interoperability for Microwave Access spectrum.
This article appeared in The Edge Financial Daily, November 18, 2011.
“This is not unexpected, given the nature of the business and the front-loaded capital outlay required to build our nationwide network,” group managing director Tan Sri Francis Yeoh said in a statement, adding that the business would turn in profit once scale is attained.
Revenue rose marginally to RM4.54 billion from RM4.41 billion, even though performance at cement processing and other utility divisions held up well.
The group said it is in the final stage of ongoing rationalisation of its retail and hospitality division with the acquisitions by Starhill Real Estate Investment Trust (Starhill REIT) of its eight hotels, including the Ritz-Carlton Kuala Lumpur, the Vistana chain of hotels, as well as the Pangkor Laut, Tanjong Jara and Cameron Highlands luxury resorts.
“Internationally, the trust is in the process of completing its acquisition of Hilton Niseko in Japan. In addition, the group completed the restructuring of its property development business on Nov 4,” he said.
Yeoh says the loss from YES is not unexpected due to the heavy capital outlay needed to build a nationwide network.
YTL Power’s net profit fell to RM246.2 million for the quarter compared with RM272.9 million last year. Revenue, however, grew by 4.4% to RM3.64 billion from RM3.48 billion, mainly due to better performance of its merchant multi-utility businesses.
“The group’s established utilities business, comprising power generation and power transmission in Malaysia, Singapore, Indonesia and Australia, water and sewerage services in the United Kingdom and merchant multi-utility businesses in Singapore, continued to perform steadily during the quarter,” the group said in a statement.
Another subsidiary, YTL Cement Bhd, recorded a 4.4% increase in earnings to RM75.8 million for 1QFY12 ending June 30, although revenue rose 17.6% to RM544.7 million (y-o-y).
Property development arm YTL Land & Development Bhd saw a fall in net profit to RM2.9 million for 1QFY12 versus RM3.2 million last year. Revenue declined to RM3.4 million from RM14 million, owing to “timing differences of project launches” and higher operating expenses, it said.
YTL E-Solutions Bhd recorded a RM9 million net profit for 1QFY12, compared with RM2.2 million last year, with revenue doubling to RM20.8 million from RM9.2 million. It attributed growth to the fee income derived from a spectrum sharing agreement in relation to its 2.3 GHz Worldwide Interoperability for Microwave Access spectrum.
This article appeared in The Edge Financial Daily, November 18, 2011.
