YTL group’s FY10 net profit rises 4.6%, revenue breaches RM16b

YTL Corporation Bhd registered a net profit growth of 150% to RM118.25 million in the fourth quarter ended June 30 (4QFY10), from RM47.32 million a year earlier, while revenue climbed 31.4% to RM4.6 billion.

For the full year, net profit rose 4.6% to RM872.6 million on revenue growth of 84.3% to RM16.4 billion. Basic earnings per share were 48.61 sen versus 54.1 sen in FY09.

Profit before tax (PBT) grew 1% to RM2.31 billion from RM2.29 billion. After adjusting for exceptional items in the previous corresponding period, PBT would have expanded 40.8% from RM1.6 billion.

In FY09, the group had recognised fair value gains of RM646.5 million on its investments in an associate (RM372 million) and investment properties (RM274.5 million).

In a statement yesterday, YTL group managing director Tan Sri Francis Yeoh Sock Ping said the performance was due primarily to the maiden consolidation of a full-year’s results of subsidiary YTL Power International Bhd’s PowerSeraya Ltd in Singapore which was acquired in March 2009.

He noted that revenue exceeded the RM16 billion mark for the first time in the group’s history.

“During the fourth quarter, the group completed the first stage of a rationalisation of our retail and hospitality assets via Starhill REIT, which involved the disposal by the Trust of Starhill Gallery and its parcels in Lot 10 Shopping Centre to Starhill Global REIT in Singapore,” Yeoh said.

“Starhill REIT is now embarking on a rebranding exercise to transform the trust into a pure-play hospitality REIT, focusing on a single class of hotel and hospitality-related assets.

“Other developments during the quarter included the completion of our acquisition of Niseko Village, a prime winter and summer destination located at the southeastern foothills of Mt Niseko An’nupuri in Hokkaido, Japan.”

The group recommended a first and final dividend of 10 sen per share for FY10, subject to shareholders’ approval.

Its subsidiary YTL Power registered a 120.6% rise in revenue to RM13.4 billion for FY10 while net profit rose 87.4% to RM1.2 billion.

According to the group, the increase was due principally to PowerSeraya’s full year contribution, as well as the recognition of a one-off deferred tax charge relating to Wessex Water Ltd, a UK subsidiary, during the previous financial year.

A fourth and final single-tier dividend of 1.875 sen was recommended. All in, YTL Power’s total dividends amount to 13.125 sen for FY10.

YTL Cement Bhd’s revenue for FY10 fell 6.4% to RM1.8 billion while PBT and net profit rose 13.9% and 11.53% to RM410.4 million and RM266.9 million, respectively. The higher PBT was largely due to gains on the disposal of a 21.48% stake in Jurong Cement Ltd in 3QFY10.

The board recommended a fourth and final single-tier dividend of 1.875 sen, bringing total dividends per share to 13.125 sen for FY10.

YTL Land & Development Bhd recorded lower revenue of RM244.9 million in FY10 from RM279.2 million in the previous year but PBT rose to RM27.7 million from a loss before tax of RM4.6 million. Net profit increased almost five-fold to RM17.1 million in FY10 from RM3.6 million.

“The decline in revenue was mainly due to lower progress recognition from both the property development and construction segments whilst the increase in profit before taxation was mainly contributed by The D6 under the group’s Sentul project and The Centrio under the Pantai Hillpark project, higher operating income receivable and reduced operating costs incurred during the quarter under review,” the group said. No dividend was declared for the financial year under review.

Meanwhile, YTL E-Solutions Bhd posted revenue of RM44 million in FY10, 20.5% higher than FY09 while earnings doubled to RM8.8 million.

Overall, YTL Corp expects to achieve satisfactory results in FY11, according to notes to its financial statements.


This article appeared in The Edge Financial Daily, August 20, 2010.