KUALA LUMPUR: Magma Group Bhd's net loss widened to RM4.27 million in the first quarter ended Mar 31, 2024 (1QFY24) from RM3.6 million a year ago.
Its revenue fell 6.0 per cent to RM6.9 million versus RM7.37 million last year.
In a statement, Magma said the revenue's improvement in this quarter is driven primarily by the recovery in the hotel operations segment and strategic adjustments in hotel management.
In 1QFY24, the company's hotel operations segment generated revenue of RM6.29 million, a substantial increase from RM2.78 million last year.
"This growth is attributed to the rising occupancy rates and the inclusion of business from WOLO Kuala Lumpur. The hotel management segment also contributed RM636,000 in revenue," it said.
Although it reported a loss in 1QFY24, the company said this reflected the broader economic environment and ongoing investments to strengthen its core operations.
Magma also emphasised its commitment in improving profitability through effective cost management and strategic initiatives to boost revenue.
Group managing director Datuk Sri Thomas Liang Chee Fong said Magma's first quarter results highlighted the significant strides it was making in the hotel operations segment.
"The strategic inclusion of WOLO Kuala Lumpur and improving occupancy rates, particularly boosted by the special travel visas issued for Chinese travellers, have been pivotal.
"We remain focused on leveraging these strengths to drive sustainable growth and are optimistic about the future," he said.
Magma said it remains committed to achieving better occupancy rates and is optimistic about the potential increase in average room rate (ARR) sparked by higher demand in the hospitality segment.
The group is focused on achieving profitability through strategic initiatives and effective management of the Impiana hotels, including Impiana KLCC Hotel, Impiana Hotel Senai and Impiana Hotel Ipoh, as well as WOLO Kuala Lumpur.
