Berjaya profit up 20% in 9 months

MANILA, Philippines - Profits of the local unit of Malaysian conglomerate Berjaya Corp. Berhad jumped by roughly 20 percent in the first nine months of its financial year on the back of higher lottery equipment rental and hotel revenues.

In a regulatory filing, Berjaya Philippines Inc. said net income hit P849.67 million in the May 2012 to January 2013 period, up from P706.19 million in the previous fiscal year.

Berjaya Philippines said revenues rose by more than seven percent to P1.63 billion from P1.52 billion a year ago.

“The revenue of the subsidiaries increased by 7.09 percent for the period under review because of increased gross receipts from lottery ticket sales,” Berjaya Philippines said.

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

Rental income from the deal with PCSO reached P1.52 billion in the nine-month period, up from P1.42 billion a year ago.

Revenues from hotel operations also picked up to P108.77 million from P104.89 million.

In 2010, Berjaya Philippines through subsidiary Perdana Hotel Philippines Inc. acquired a 212-room hotel that was previously named Best Western Astor Hotel. It now operates as Berjaya hotel located in Makati.

Berjaya Philippines plans 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.