KLCCP Stapled Group posted higher quarterly revenue of RM394.6 million for the second quarter 2023 (2Q 2023) driven by improved performance across all business segments buoyed by the upswing in business and Meetings, Incentives, Convention and Exhibition (MICE) activities. The Group’s performance saw steady momentum and remained resilient, marking significant growth in the hospitality and management services segments with an overall 12.7% increase from RM350.3 million in quarter two, 2022.
Profit Before Tax (PBT) rose 7.8% to RM236.4 million, reflecting the efforts of the Group’s curated marketing promotions and initiatives in driving stronger customer experience and footfall. The Group declared a dividend of 8.80 sen per stapled security, 10.0% higher from quarter two, 2022, bringing the total to 17.30 sen for the first half 2023.
A resilient quarter, signifying a healthy and stable growth
Commenting on the Group’s performance, Chief Executive Officer, Datuk Md. Shah Mahmood said, “the Group achieved higher revenue, underpinned by the resilient portfolio performance across all business segments, led by the hotel and management services segments. Following the encouraging performance in quarter one, we continued our focus on operational excellence, capitalising on the upsurge in tourism, MICE activities, increasing consumer demand for events, and the improving economic climate.”
The hotel segment, represented by Mandarin Oriental, Kuala Lumpur (MOKL), continued to record a robust performance during the quarter on the back of higher occupancy of 48.0% compared to 43.0% in quarter 2, 2022 and increase in MICE and banqueting activities. The vigorous pick up in events, coupled with promotional offerings, have collectively led to a strong top-line for the hotel, with a 39.2% increase from the second quarter last year.
The management services segment comprising the facilities management and the car parking management services saw revenue and PBT increase by 43.7% and 33.3% respectively, contributed by maintenance activities undertaken during the quarter and improved car park revenue with the increase in transient and season car park customers.
Suria KLCC and the retail podium of Menara 3 PETRONAS which represent the retail segment, recorded higher revenue of RM128.5 million, an increase of 2.6% compared to quarter two, 2022 with PBT improving to RM97.2 million. The malls engaged its shoppers through campaigns and events activation which drove higher tenants’ sales and increased footfall to the mall. 12 new tenants strengthened the mall’s tenant mix and contributed to the higher occupancy of 96.0%. They include popular F&B and fashion outlets namely TGI Friday, Tien (authentic Fujian cuisine), Padi House (traditional authentic Malaysian cuisine) and Ralph Lauren.
The office segment remained stable, backed by the Triple Net Lease (TNL) arrangement and long-term leases of its office assets namely, PETRONAS Twin Towers, Menara 3 PETRONAS, Menara ExxonMobil and Menara Dayabumi. These office assets continued to anchor the Group’s stable performance, recording an increase in revenue and PBT of RM145.4 million and RM119.6 million respectively.
The Group expects the positive growth momentum to continue to the next quarter with the resurgence of domestic and international MICE activities, events, and tourism.
The retail segment is well positioned for continued growth with its strategy in place combined with a vibrant mix of well-curated tenants. Backed by its robust brand reputation and strategic collaborations, MOKL anticipates sustained growth and favourable performance in the next quarters.
The Group remains confident to adapt to market conditions towards sustainable growth despite inflationary pressures and rising costs and expects its performance to remain stable heading into the second half of the year.