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Memories Group Q4 net profit surges to US$6.15m on one-off gain
ON the back of a one-off US$8.07 million gain from a bargain purchase, Catalist-listed Myanmar-based tourism firm Memories Group posted net profit attributable to shareholders of US$6.15 million for the fourth quarter ended March 31, 2019.
This was more than 11 times the year-ago figure of US$556,000. Gross profit, however, fell 12 per cent to US$2.06 million from US$2.35 million in the year-ago period. Revenue was US$5.41 million, up 10 per cent from US$4.92 million.
Earnings per share for the quarter was 1.23 US cents, compared with 0.16 US cent in the year-ago period. No dividend was declared as Memories Group "intends to conserve cash for working capital".
For the full year, Memories Group posted net profit of US$2.29 million, turning around from the previous year's net loss of US$6.43 million. Revenue was up 14 per cent at US$10.1 million from US$8.84 million the year before.
Though Myanmar has seen a fall in Western visitors, tourist numbers from Asia have been rising, said Memories Group. Of its largest business segment, 'experiences', it said: "The group has been enhancing its marketing efforts in Asia and, barring unforeseen circumstances, is expecting its effort to materialise with improved bookings from Asia in the medium term."
The group said it will be re-strategising its sales and marketing plan for Europe and expanding efforts into other markets. With the peak season ending, it expects sales to be slower in the next six months due to the monsoon season, and will use this slower season "to look into improving its operational processes and conducting upgrades and refurbishments of hotel assets where they would be beneficial".
Memories Group was spun off from mainboard-listed Yoma Strategic Holdings in 2017 and made its Catalist debut in January 2018. Shares in the company closed unchanged at 7.4 Singapore cents on Tuesday.