YTL Corp expects its business to stay resilient

The Star

22-05-2025

PETALING JAYA: YTL Corp Bhd expects the performance of its business segment to remain resilient going forward due to the essential nature of its operations.
For the third quarter ended March 31, 2025 (3Q25), the group posted a 15.5% year-on-year (y-o-y) decline in net profit to RM419.4mil, translating to an earnings per share of 3.81 sen. This is despite a higher revenue which grew by 1.5% y-o-y to RM7.3bil.
For the nine-month period ended March 31, 2025 (9MFY25), YTL Corp's net profit was down by 17% y-o-y to RM1.3bil, while revenue was up by 4% y-o-y to RM23.2bil.
Earnings before interest, tax, depreciation and amortisation for 9MFY25 remained steady at RM6.9bil, compared with RM7bil for 9MFY24.
YTL Group executive chairman Tan Sri Francis Yeoh Sock Ping said the group delivered solid results for the period under review, with all divisions continuing to turn in healthy performances.
'Results from our utilities segment moderated following an exceptional performance driven by the power generation sub-segment in Singapore last year, and we continue to see good turnaround in the UK water and sewerage sub-segment,' he said in a statement yesterday.
Yeoh added that the cement division recorded a strong set of results, whilst higher revenue in the construction segment due to an increase in work volumes from third-party construction projects was impacted by elevated construction costs.
'Meanwhile, the hotels division continued to achieve higher occupancy rates and stronger average room rates across key properties,' he said.
YTL Power recorded revenue of RM16.25bil for 9MFY25 compared to RM15.98bil for the corresponding 9MFY24. Profit before tax decreased to RM2.24bil for the current period under review over RM2.88bil for the same period last year, whilst profit after tax stood at RM1.79bil this year compared to RM2.39bil for the same period last year.
YTL Power executive chairman Yeoh said the group's performance remained strong for the financial year to date, prompting a higher interim dividend of 4 sen per share.
'Performance of the power generation segment in Singapore has continued to moderate on the back of lower pool and retail prices, following exceptional results seen last year. In our water and sewerage segment, higher revenue resulted from the increase in price allowed by the UK regulator, as well as revenue contribution from our operations in Malaysia, with profit improving primarily due to the said price increase in the UK, coupled with the decrease in inflationary pressures on index-linked bonds,' he said.
Yeoh added that the telecommunication segment recorded better performance in the current period due to higher project revenue, whilst in the investment holding segment, higher revenue was contributed mainly by the consultancy services sub-segment, although profit was impacted by unrealised foreign exchange losses.
YTL Power declared a higher interim dividend of 4 sen per ordinary share in respect of the financial year ending June 30, 2025, compared to 3 sen per ordinary share declared in the corresponding quarter last year. The book closure and payment dates for which are June 25, 2025 and July 10, 2025, respectively.
Meanwhile, Malayan Cement's revenue remained stable at RM3.42bil for 9MFY25 compared to RM3.41bil for the corresponding 9MFY24. Profit before tax increased 43% to RM718.3mil for the nine months under review compared to RM503.4mil for the same period last year, whilst profit after tax rose 59% to RM507.5mil in the current period under review over RM318.7mil for the same period last year.
Malayan Cement executive chairman Yeoh said the better performance was due to improved operational efficiencies, lower production costs, reduced borrowing costs and the absence of recognition of share option costs in the current quarter, coupled with a one-off gain from a compulsory land acquisition recorded in the last quarter.
'The group's ongoing cost reduction and efficiency efforts, supported by strong leadership and innovation, have yielded positive results. All business units contributed to the improved performance, showcasing the strength of the group's diversified portfolio, with the ready-mix concrete business excelling in delivering high-value, bespoke products tailored to the evolving needs of the construction industry,' he said.
Meanwhile, YTL Hospitality REIT recorded revenue of RM421.3mil for 9MFY25, approximating that of the corresponding 9MFY24, whilst net property income grew 2% to RM228.1mil for the current period under review compared to RM223.7mil for the same period last year.