KUALA LUMPUR: I-Berhad reported strong financial results for the third quarter of 2024, driven by substantial earnings growth in its leisure and property segments.
For the nine months ending September 2024, the company's pre-tax profit reached RM27 million, representing a 2.7-fold increase from the same period in 2023.
This significant growth was largely driven by the leisure and hospitality segment, which posted a nine-month year-to-date (9M YTD) pre-tax profit of RM14.6 million, a marked improvement from RM1.8 million during the corresponding period last year.
The group attributed this growth to the strong performance of DoubleTree by Hilton i-City Hotel and increased visitors to i-City's theme park, boosted by new attractions introduced over the past year.
I-Berhad Chairman Tan Sri Lim Kim Hong expressed optimism about the group's growth trajectory.
"The group has reviewed its real estate investment strategy since the pandemic setback a few years ago, and the results of the past nine months are a testament to our strategic efforts to reinvent ourselves in the post-pandemic era," he said.
Lim attributed the group's strong performance to its innovative approach to maximizing land value, incorporating digital technology to enhance developments and blending leisure activities for growth.
He said that developing a portfolio intersecting leisure and investment properties is aimed at building a solid recurring income stream and creating a unique real estate investment proposition.
Lim also highlighted expected growth in the leisure and hospitality segment as the group works to position Wyndham Suites KLCC as a leader in the family playcation market, offering luxury two-room suites with 5-star play, stay, and eat experiences.
The upcoming launch of WynSports, a 24,500 sq ft active play space at Wyndham Suites KLCC, will further elevate this segment as the first of its kind within the Wyndham Global network and the largest hotel play space in Malaysia.
According to Lim, the integration of technology-driven leisure activities has not only strengthened I-Berhad's recurring revenue but also benefited its property development and investment segments.
The upcoming launch of SkyCity in December 2024, featuring a 600-meter-long glass slide and a 60-meter-high LED-lit tower, is expected to attract more visitors to i-City, thereby boosting interest in its property development projects.
Despite challenges in the high-rise luxury property market, I-Berhad's BeCentral project has garnered considerable interest, particularly among young urban investors.
The property investment segment also delivered solid performance, with pre-tax profit rising 81 per cent to RM10.48 million in the first nine months of 2024, compared to RM5.78 million in the same period last year.
This growth was driven by increased occupancy rates at properties such as the GBI-rated Grade A office tower Mercu Maybank, Central i-City Mall, a Tier-3 data centre, and car parks, Lim said.