TANJONG Q1 earnings fall on lower power, gaming contributions

Tanjong plc reported a net profit of RM177.2mil for its first quarter ended April 30, down 7.4% compared with RM191.4mil a year earlier, on lower contributions from some segments.

Revenue came in at RM945.8mil versus RM978.8mil before while earnings per share stood at 43.95 sen against 47.47 sen earlier.

It declared a first interim gross dividend of 20 sen per share.

Tanjong, which is largely involved in power generation and gaming, said operating profit from power generation fell RM27mil, or 10%, to RM238mil due to lower net contribution from overseas plants of about RM15mil (arising mainly from lower US dollar exchange rate) and the recognition in the corresponding quarter of RM10mil related to warranty claims received.

Gross sales proceeds from the number forecast operator (NFO) business also decreased to RM506mil from RM530mil due to lower demand for NFO products.

This, coupled with additional tax payments on special draws, led to a reduction in the gaming segment’s operating profit by RM15mil to RM47mil from RM62mil, Tanjong told Bursa Malaysia.

Leisure operating profit, however, improved by RM8mil due to better results at TGV Cinemas Sdn Bhd and Tropical Islands resort project.


- by thestar.com.my