Berjaya net income down 5% in H1

MANILA, Philippines - Lower revenues from the rental of lottery equipment dragged the earnings of Berjaya Philippines Inc. in the first half of its 2013-2014 fiscal year.

In a regulatory filing, the local unit of Malaysian conglomerate Berjaya Corp. said its net income slipped five percent to P605.33 million in the May to October period from P637.29 million a year ago.

Total revenues, majority of which were derived from lottery equipment rental and hotel operations, declined 17 percent to P926.42 million from P1.11 billion a year ago, the company said.

Specifically, rental revenues declined 18 percent to P858.04 million from P1.05 billion, offsetting the two-percent improvement in revenues of hotel operations to P68.38 million from P66.92 million.

Berjaya Philippines’ subsidiary Philippine Gaming Management Corp. provides computers and online lottery equipment for the Luzon operations of the Philippine Charity Sweepstakes Office (PCSO). It is entitled to rentals equal to a certain percentage of the gross receipts from all ticket sales of PCSO.

So far, PGMC has 3,900 existing lottery machines that took more than 10 years to be installed in Luzon. The company also owns and operates Berjaya hotel in Makati.

Costs and other operating expenses jumped 15 percent to P515.74 million from P447.78 million a year ago, Berjaya Philippines said.

Aside from hotel and rental, Berjaya Philippines holds the local franchise for pizza restaurant Papa John’s and is the sole distributor of Mazda vehicles, parts, and accessories in the country.

Berjaya Philippines earlier announced it is looking at local transportation projects and introducing its Malaysian businesses to the Philippines.

In Malaysia, the company is into property, hotel and resorts, distribution of vehicles, landfills and water treatment and golf course.

Berjaya Philippines is looking to build more hotels in the country, including the luxury Four Seasons Hotel, and produce consumer goods in anticipation of higher consumption and tourism growth.