Magma Group Reports Financial Results For 1Q FY2024

Company Optimistic About Prospects Ahead Amid Improved Performance in Hotel Segment

KUALA LUMPUR, 28 MAY 2024 – Magma Group Berhad ("Magma" or the "Company"), a dynamic hospitality and  investment holding group, today announced the financial results for the first quarter of the fiscal year 2024 (“Q1 FY2024”). The Company reported revenue of RM6.922 million for Q1 FY2024, with significant growth compared to the immediate corresponding quarter’s (“Q4 FY2023”) negative revenue of RM2.457 million. This improvement of RM9.379 million is driven primarily by the recovery in the hotel operations segment and strategic adjustments in hotel management.

In Q1 FY2024, the Company’s hotel operations segment generated revenue of RM6.286 million, a substantial increase from RM2.777 million in the corresponding quarter of the previous year (“Q1 FY2023”). This growth is attributed to the rising occupancy rates and the inclusion of business from WOLO Kuala Lumpur. The hotel management segment also contributed RM0.636 million in revenue.

Although the Company reported a Loss After Tax (“LAT”) of RM4.268 million for Q1 FY2024, this reflects the broader economic environment and ongoing investments to strengthen its core operations. Magma remains committed to improving profitability through effective cost management and strategic initiatives to boost revenue. The Group is focused on enhancing its financial performance and anticipates further growth in the hospitality segment, particularly with the expected increase in tourist arrivals from China due to new visa policies and promotional efforts.

Dato' Sri Thomas Liang Chee Fong, Group Managing Director of Magma Group Berhad, commented, "Our first quarter results highlight the significant strides we are making in the hotel operations segment. The strategic inclusion of WOLO Kuala Lumpur and improving occupancy rates, particularly boosted by the special travel visas issued for Chinese travellers, have been pivotal. We remain focused on leveraging these strengths to drive sustainable growth and are optimistic about the future."

Looking forward, Magma remains committed to achieving better occupancy rates and is optimistic about the potential increase in Average Room Rate ("ARR") sparked by higher demand in the hospitality segment. The Group is focused on achieving profitability through strategic initiatives and effective management of the Impiana hotels, including Impiana KLCC Hotel, Impiana Hotel Senai and Impiana Hotel Ipoh, as well as WOLO Kuala Lumpur.