Weak earnings, tax bill batter Magnum shares

Kuala Lumpur

MAGNUM Bhd dropped by a tenth to RM1.88 on Monday after the group revealed weaker earnings for the first three months to end-March and a hefty tax bill of nearly 477 million ringgit (S$153 million) issued by the taxmen seeking to claw back revenue.

Magnum's weaker than expected performance - its first quarter to end-March core net profit of RM31 million was 56 per cent less year-on-year and nearly a third less quarter-on-quarter - was all the more depressing given that the first three months is seasonally its strongest quarter and typically contributes more than 30 per cent of full year earnings, said Alliance Research.