KUALA LUMPUR (March 24): MyNews Holdings Bhd’s net loss narrowed to RM7.86 million in the first quarter ended Jan 31, 2022 (1QFY22) from RM8.94 million a year ago on higher revenue achieved, thanks to the increase in number of outlets and footfall upon relaxation of the full lockdown in October 2021.

However, the results were partly dragged by higher administration expenses, selling and distribution expenses and other expenses.

Administration expenses surged 17.6% to RM8.37 million from RM7.12 million a year ago due to the addition of new talents and spending on marketing materials to promote the new CU brand which had its first outlet opened in April 2021.

Selling and distribution expenses increased 36.9% to RM27.15 million from RM19.84 million during the same period, mainly due to the increase in number of CU outlets and longer operating hours brought about by the lifting of full lockdowns.

Meanwhile, other expenses were up 11.9% to RM15.28 million from RM13.65 million due to the increase in depreciation of property, plant and equipment from RM4.88 million to RM6.4 million.

The group recorded losses per share of 1.15 sen in the period — its eighth consecutive loss-making quarter — against losses per share of 1.3 sen in the same quarter last year.

Revenue for the group jumped 41.34% year-on-year (y-o-y) to RM139.44 million from RM98.65 million a year earlier, its filing with Bursa Malaysia showed. The group did not declare any dividend for the latest quarter.

Looking forward, in view of improved bottom line and top line, the group said it will continue to increase its outlets, namely CU stores, myNEWS SUPERVALUE and myNEWS CVS stores.

Additionally, it intends to expand online order delivery on demand by working closely with strong partners.

The group is hopeful for a continuing business improvement as Malaysia is set to enter the endemic phase of Covid-19 in April 2022 with all restrictions on business operation hours removed.

Shares in MyNews settled unchanged at 74 sen, for a market capitalisation of RM505 million.

Source: TheEdge - 25 Mar 2022