Highlight YTL Corp 1Q profit rises 9% yoy to RM427.6m; declares 1.5 sen dividend

by **Cals** Thu 21 Nov 2013, 22:41

Highlight YTL Corp 1Q profit rises 9% yoy to RM427.6m; declares 1.5 sen dividend

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Thursday, 21 November 2013 19:45

KUALA LUMUR (Nov 21): YTL Corporation Bhd’s net profit for the first quarter ended September 2013 rose 9% year on year to RM427.6 million.

Its quarterly revenue grew 2.7% to RM5,210.7 million, from RM5,072.1 million posted in preceding year corresponding quarter ended 30 September 2012.

YTL Corp declared an interim dividend of 15% or 1.5 sen per share, to be paid on 17 January 2014.

In a press statement, YTL group managing director Tan Sri Francis Yeoh Sock Ping said: “Revenue growth was contributed mainly by the group’s cement, property development and investment and hotels segments.

“However, competitive pricing in the cement industry resulted in a marginal decrease in the division’s profit despite a 9% revenue increase, and the hotels segment registered an increase in revenue…, although unrealised foreign exchange losses contributed to a slightly higher overall loss before tax for the division.”

He said YTL’s utilities segment recorded lower revenue resulting from fewer units of electricity sold and lower trading volumes, coupled with a decrease in electricity prices. Nevertheless, the division recorded a 5.5% increase in pre-tax profit during the quarter.

The group’s property development and investment division registered a significant improvement, due mainly to contributions from The Capers condominium, sales of completed properties in Sandy Island in Singapore, unrealised foreign exchange gains and Starhill Global REIT.

In the statement, YTL Corp also provided some details on its listed companies/business segments:

YTL Power International Bhd recorded revenue of RM3,981.1 million for the 3 months ended 30 September 2013 compared to RM4,179.1 million for the same period last year, whilst profit stood at RM235.7 million, compared to RM251.8 million.

The decrease in revenue was principally due to fewer units of electricity sold and lower trading volumes, as well as a decrease in electricity prices resulting from lower fuel oil prices.

Meanwhile, the decrease in net profit was mainly due to lower vesting non-fuel margins and volumes and retail non-fuel margins, as well as a provision for impairment of investment in an associate and unrealised foreign exchange losses.

The group’s mobile broadband division, which operates the Yes 4G network, continued to see good growth of its subscriber base which has bolstered revenue and narrowed the division’s losses.

The group’s water and sewerage business in the United Kingdom continued to deliver strong results due to better pricing allowed.

YTL Land and Development Bhd’s revenue increased to RM116.9 million for the 3 months ended 30 September 2013, compared to RM51.1 million for the same period last year, whilst profit for the period increased to RM4.5 million from RM2.9 million.

The higher revenue and net profit were mainly contributed by The Capers at Sentul East, sales of completed properties in the Sandy Island project in Singapore’s Sentosa Cove and unrealised foreign exchange gains.

YTL e-Solutions Bhd registered an increase in revenue to RM21.7 million for the 3 months ended 30 September 2013 compared to RM21.6 million for the same period last year, whilst profit for the period was RM14.5 million compared to RM15.5 million last year.

The increase in revenue arose mainly from higher hardware sales, whilst the decrease in profit was substantially due to the accrual of contributions amounting to RM1.125 million to the Universal Service Provision (USP) fund.

Starhill REIT Bhd achieved revenue of RM24.5 million for the 3 months ended 30 September 2013, a marginal increase over RM24.2 million for the same period last year, due mainly to the recognition of revenue generated by the Sydney Harbour, Brisbane and Melbourne Marriott hotels, acquired in November 2012.

Income available for distribution grew to RM28.2 million for the quarter compared to RM22.3 million last year, representing an increase of 26.8%.

Pintar Projek Sdn Bhd, the manager of Starhill REIT, declared an interim distribution of 1.9175 sen per unit, payable on 27 December 2013.