KUALA LUMPUR: MULTI-PURPOSE HOLDINGS BHD [] (MPHB) saw its net profit for the second quarter (2Q) ended June 30, 2009 grow by 150.4% year-on-year to RM127.4 million, thanks to better results from all its divisions and income generated from investing opportunities.
In results announced to Bursa Malaysia yesterday, the company’s revenue rose by 6.6% to RM804 million during the quarter compared with RM754 million a year earlier.
According to the notes accompanying the announcement, MPHB’s gaming division saw higher profits for the three months ended June 30, with pretax profit increasing to RM101.29 million from RM42.68 million in the previous year’s corresponding period.
“The stockbrocking division achieved substantial brokerage income coupled with the writeback of provision for diminution in value of investments which have resulted in profit before tax of RM10.21 million, which is RM8.53 million higher than that in the previous corresponding quarter,” stated MPHB.
The company’s finance division saw year-on-year increase of 370% in terms of pretax profit from RM2.3 million to RM10.8 million, which was due to higher premium earned and lower claims incurred, according to MPHB.
MPHB also declared the distribution of one treasury share for every 10 existing ordinary shares. This will represent the first time that the company has distributed a dividend in specie instead of cash. For the financial year ended Dec 31, 2008, MPHB had paid out a total gross dividend of 10 sen per share.
On a half-year basis, MPHB saw its net profit increased by 74.3% to RM172.4 million from RM98.9 million. Revenue had likewise increased from RM98.9 million to RM172.4 million.
It should be noted that this is the first half-year earnings result since MPHB completed the privatisation of Magnum Corp Bhd in 2008 via a selective capital repayment scheme.
According to MPHB, the privatisation of Magnum has allowed MPHB to emerge as a pure gaming company and strengthen its balance sheet by repaying external debts. The company had also embarked on a share buyback as part of the exercise.
MPHB’s stock jumped following the results announcement, closing 6.2% up yesterday at RM2.07, its highest close in more than a year.
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