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PETALING JAYA (Aug 20): Magma Group Bhd’s net loss widened 34% year-on-year to RM8.57 million for the second quarter ended June 30, 2026 (2QFY2026), as lower hotel revenue, higher operating expenses and financing-related costs weighed on its performance.
In a Bursa Malaysia filing on Thursday (Aug 20), the hospitality and property group said quarterly revenue fell 7.4% to RM6.52 million from RM7.03 million a year earlier. Basic loss per share widened to 0.49 sen from 0.42 sen.
Magma attributed the higher quarterly loss mainly to lower revenue, higher operating expenses and additional financing-related expenses incurred in connection with the drawdown and utilisation of loan facilities secured for its WOLO Mont Kiara KL property development.
Hotel operations, the group’s main revenue contributor, generated RM5.84 million in the quarter, down from RM6.39 million a year earlier. The segment posted a loss after tax of RM389,000, compared with a profit after tax of RM212,000 in 2QFY2025.
Hotel management revenue rose slightly to RM674,000 from RM649,000, while the segment’s profit after tax eased to RM178,000 from RM181,000.
The property development segment recorded no revenue during the quarter and posted a loss after tax of RM2.20 million, compared with RM703,000 a year earlier. Magma said no property development revenue was recognised because WOLO Mont Kiara KL was scheduled for launch in 3QFY2026.
First-half loss widens
For the first six months of FY2026, loss attributable to shareholders widened 18.7% to RM15.87 million from RM13.36 million a year earlier, while revenue declined 4.4% to RM12.78 million from RM13.37 million.
Magma’s total borrowings stood at RM105.91 million as at June 30, compared with RM93.20 million at end-2025. The June-end figure comprised RM104.75 million in term loans and RM1.17 million in bank overdrafts.
The group said it remains cautiously optimistic about the coming quarters and will focus on improving hotel occupancy rates, room rates and operational efficiency. It has also invested in the food and beverage business to diversify its income sources.
Magma said WOLO Mont Kiara KL was subsequently launched in 3QFY2026, with the project’s contribution dependent on development progress and sales activities.
Heritage Land disposal payment due
Separately, Magma said all conditions precedent for its proposed RM63 million disposal of a 20% stake in Heritage Land Sdn Bhd to Harum Aspirasi Sdn Bhd had been fulfilled, including approval from the Ministry of Economy.
The balance purchase consideration is expected to be paid on or before Sept 1 under the sale and purchase agreement.
As at Aug 14, Magma had issued 82.56 million new shares under its private placement, raising RM23 million. Of the amount raised, RM19.25 million had been utilised, leaving RM3.75 million unutilised and placed with a bank.
The broader placement programme earmarks RM32 million for property development costs, RM15 million for investment in Magma’s hotel segment, RM1.996 million for working capital and RM1.1 million for expenses related to its proposed notes issue.
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