MyNews Holdings Bhd sank into the red in the first quarter ended Jan 31, 2021 with a net loss of RM8.94 million, from a net profit of RM4.35 million a year ago, as its business was impacted by movement restrictions implemented by the government to curb the spread of Covid-19.
Revenue for the group fell 29.82% to RM98.65 million from RM140.58 million a year earlier, its filing to Bursa Malaysia showed. The group did not declare any dividend for the latest quarter.
The group said its 1QFY21 was dragged through the longest period of the worst movement controls so far. "Moreover, about 80% of our outlets [are] located in the Klang Valley, which had been going through the most restrictive movement controls in the country," it said.
Compared to the immediate preceding 4QFY20, the group's net loss expanded from RM5.15 million, while revenue retreated from RM115.83 million, as the government replaced the Recovery Movement Control Order (RMCO) with the more restrictive Conditional MCO in certain states — which was extended and expanded to more places. Subsequently, the MCO was reimplemented on the whole of Peninsular Malaysia towards end-January.
Going forward, in anticipation of the relaxation of movement restrictions and following the start of the Covid-19 vaccination programme in the country, the group is hoping for a gradual recovery of its business.
“Our business will continue to grow in line with the growth of all the brands in our stable, namely myNEWS, myNEWS SUPERVALUE, WHSmith and CU.
"While all the brands expand simultaneously but at different rates, we expect to realise a faster rate of growth overall, barring any adverse unforeseen circumstances,” it said.
Its first CU outlet will be launched on April 1 in Centre Point, Bandar Utama. Thereafter, the company targets to open between 30 to 50 CU outlets this year.
“We are optimistic that this brand and concept from South Korea will be successful and will likely increase the business of the company at a faster rate,” it said.
Similarly, its myNews SUPERVALUE stores that cater for new norm shoppers will add more business to the company, as the group targets to open 20 more such stores this year.
“Meanwhile, our most popular myNEWS brand stores will continue to grow at suitable locations,” it said.
MyNews shares closed three sen or 3.47% higher at 89.5 sen today, valuing the group at RM610.53 million.
Source: The Edge Markets
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