Pg 147 - Berjaya Corporation Berhad

ceo’s reviewof operationsOn the whole, the residential sector, the bastion of the propertymarket, is expected to increasingly focus on factors such aslocation, conceptual innovation and branding in their bid to securehigher take-up rates. Developments in established locations,especially landed properties with reasonable pricing, innovativedesigns, lifestyle facilities and quality workmanship, are anticipatedto do well.Under the current scenario, we are optimistic about the futureprospects of the property market and are confident that we willcontinue to improve on the current year’s result moving forward.In line with this and as part of our efforts to expand our currentland banks, the Group has acquired parcels of land in Bangkok,Thailand for a proposed mixed development project, in Penangfor a proposed residential development venture and in Kuantan,Pahang for a proposed residential and commercial developmentprojects as well as a land reclamation and mixed developmentproject.GAMINGBerjaya Sports Toto BerhadBerjaya Sports Toto Berhad (“BToto”) recorded a revenue ofRM2.94 billion, an increase of 10%, and a higher pre-tax profit ofRM571.9 million or 17.3% increase respectively for the financialyear ended 30 April 2006, as compared to the previous financialyear. In addition to the improved performance, the write back of anoverprovision in taxation in prior years also resulted in an increasein profit attributable to shareholders by 41.5%.The higher increase in pre-tax profit was mainly attributed to theimproved performance of its principal subsidiary, Sports TotoMalaysia Sdn. Bhd. (“Sports Toto”), as well as gain on disposal ofBToto’s ICULS during the financial year.Sports Toto achieved an increase of 10.0% in revenue mainlyattributed to two additional draws in the current year under review,strong sales from the Super 6/49 game which recorded its highestever Jackpot of RM15.9 million in May 2005 and seven months’contribution from sales of the 4-Digit I-Perm game which waslaunched at the end of September 2005.EDUCATIONInformatics Education Ltd.An aerial view of Informatics’ Singapore campus.Informatics Education Ltd. (“Informatics”) established in 1983, hasbeen listed on Singapore Stock Exchange since 1993. Informaticsis a leading provider of higher education and training services viaboth traditional class room delivery, e-learning and flexi-learning(combination).In 2004, B-Land took a strategic stake in Informatics and sincethen, with enhanced business network, Informatics continues to bea major life long learning player in the higher education and trainingindustry. Presently, Informatics has 138 operations in 23 countries.For the financial year ended 31 March 2006, through its operationsrestructuring, rationalization and consolidation, Informatics hasmanaged to reduce its net loss by 68% to S$22.8 million from aS$71.3 million loss in the previous year. This translated into S$11.4million or 27% savings in staff cost and a S$37.8 million or 45%reduction in other operating expenses.Overall, the Informatics group operations in Singapore andMalaysia have stabilized and continued to improve. Its operationsin Hong Kong and the United Kingdom recorded the best resultsin terms of both revenue and profit for the last five years. Eventhough the educational sector remains challenging, Informatics hassuccessfully maintained its strong fundamentals across-the-board.During the financial year, Informatics officially opened its new600,000 sq. ft. campus at Science Centre Road in Singapore andat the same time, Informatics is doubling its effort in attracting moreforeign students to this facility. Presently, Informatics is the privateeducation organization in Singapore with the most number ofinternational government scholars. Informatics has also expandedits network of strategic global alliances by signing three newMemoranda of Understanding with the Linguaphone Group, SouthKorea’s Chang Shin College and Peking University’s InternationalBrand Federation. With the latest link-ups, Informatics has strongstrategic partnerships and alliances with more than 22 renowneduniversities and educational institutions worldwide.Sports Toto’s draw equipment.Moving forward, Informatics will continue to focus its effort onrevenue growth by means of product development, new marketpenetration and strategic partnerships through its five business16Annual Report 2006Berjaya Land Berhad (201765-A)