Multi-Purpose 3Q net profit jumps on sharp rise in gaming earnings

More details on MPHB Q3 results.

Multi-Purpose Holdings Bhd’s (MPHB) net profit for its 3QFY10 ended Sept 30 soared 70.5% to RM86.5 million from RM50.73 million a year ago due to improved performances in its gaming, stockbroking and corporate divisions.

In a filing to Bursa Malaysia, MPHB said its pre-tax profit doubled to RM138.06 million from RM67.24 million on the back of a 4.61% revenue increase to RM850.7 million from RM813.24 million.

Earnings per share expanded to 8.1 sen versus 4.9 sen a year ago while net assets per share as at Sept 30 was RM2.14. MPHB’s core businesses are in financial services, stockbroking, hospitality, property and gaming.

For the current quarter, MPHB said its gaming division’s pre-tax profit increased six-fold to RM89.1 million from RM12.8 million a year ago mainly from its 4D Jackpot sales, lower prizes payout ratio and lower finance costs.

Its gaming operations are run via Magnum Corporation Sdn Bhd, of which MPHB holds a 51% stake.

MPHB added that its financial services division’s pre-tax profit slid 1.67% to RM17.7 million from RM18 million a year ago mainly from the writeback of provisions for impairment of investments in the previous corresponding period.

The group said its stockbroking division also saw a 35% increase in pre-tax profit to RM6.2 million from RM4.6 million in the previous quarter due to recovery of debts and higher net gain from proprietary trading.

For the cumulative nine months, net profit fell 3.73% to RM214.83 million from RM223.16 million despite pre-tax profit growing 12.25% to RM398.14 million from RM354.7 million a year ago.

Revenue increased 10.87% to RM2.72 billion from RM2.45 billion a year ago.

“Better performances from the gaming and financial services divisions have contributed to the improvement,” MPHB said in the notes accompanying its financial results.

Quarter-on-quarter, net profit jumped nearly 44% to RM86.5 million from RM60.14 million on the back of a 14% pre-tax profit increase to RM138.06 million from RM121.07 million a quarter earlier.

MPHB said the higher pre-tax profit was mainly due to higher contributions from its stockbroking and corporate and others divisions.

Revenue however fell 2.37% to RM850.7 million from RM871.36 million.

MPHB also said it was confident of achieving satisfactory results for the current FY10, barring any adverse economic conditions. Its shares yesterday fell seven sen to close at RM2.12. - by Chua Sue-Ann