Magma Group Reports 42.29% Growth In Revenue to RM6.988 Million For Q2 FY2024

Company Continues Positive Momentum in Hotel Segment, Focused on Sustainable Growth

KUALA LUMPUR, 30 AUGUST 2024 – Magma Group Berhad ("Magma" or the "Company"), a dynamic hospitality and investment holding group, today announced its financial results for the second quarter of the fiscal year 2024 ("Q2 FY2024"). The Company reported revenue of RM6.988 million for Q2 FY2024, reflecting an increase of 42.29% from RM4.911 million in the same quarter last year (“Q2 FY2023”). This growth was primarily driven by improved performance in the Hotel Operation segment, particularly with the inclusion of WOLO Kuala Lumpur into the Company’s portfolio.

In Q2 FY2024, the Company’s Hotel Operation segment generated revenue of RM6.345 million, a significant improvement from RM2.544 million in the corresponding quarter of the previous year. The Hotel Management segment also contributed RM0.643 million in revenue.

In conjunction with the revenue growth, Magma reported a Loss After Tax (“LAT”) of RM1.819 million, a significant improvement from the LAT of RM3.024 million in Q2 FY2023. The narrowing of losses is largely contributed by stronger revenue contribution of the Company’s Hotel Operation and Management segment, and effective cost management strategies.

Quarter-on-quarter, Magma’s current quarter’s revenue of RM6.988 million showcased a slight increase compared to the RM6.922 million recorded in the first quarter of FY2024 ("Q1 FY2024"). This improvement highlights the stable sales performance of the Company supported by consistent market presence and sales activities. The LAT narrowed to RM1.819 million in Q2 FY2024, compared to a substantial LAT of RM4.268 million in Q1 FY2024, mainly due to the adjustment of fees incurred for the Cherating project in Q1 FY2024 and the remeasurement of lease liabilities in the current quarter.

In addition to its operational focus, Magma is also undertaking a significant fund-raising exercise through the issuance of Redeemable Convertible Notes (“RCN”). This initiative, aimed at raising up to RM100.0 million, will enhance the Company's financial position, enabling it to repay existing bank borrowings, invest in the refurbishment and upgrading of its hotel facilities, and support working capital needs. This strategic move reflects Magma's commitment to strengthening its balance sheet and driving sustainable growth across its core business segments.

Dato' Sri Thomas Liang Chee Fong, Group Managing Director of Magma Group Berhad commented, "Our second quarter results reflect the positive strides we are making, particularly within our hotel operations. We believe that the increased consumer confidence, pent-up demand for travel and adaptive business models will drive positive developments for the industry in the near term, and we remain focused on enhancing our offerings to further capitalise on the recovering tourism market. We are committed to maintaining this momentum and continuing to improve our financial performance in the coming quarters."

As Magma Group Berhad looks ahead, the Company remains focused on its core operations within the hospitality sector, leveraging the strengths of its flagship hotels, including Impiana KLCC Hotel, Impiana Hotel Ipoh, Impiana Hotel Senai, and WOLO Kuala Lumpur. The Company is committed to enhancing occupancy rates and Average Room Rates (“ARR”), capitalising on the anticipated increase in tourist arrivals and executing ongoing strategic initiatives. These efforts are aimed at driving sustainable growth and delivering long-term value to shareholders.