GROUP revenue of mainboard-listed Yoma Strategic : Z59 +2.54% for the quarter ended Dec 31, 2022 rose year on year by 76 per cent to US$35.9 million from US$20.4 million, the group said in a business update on Friday (Feb 10).

 

Topline growth was driven by contributions from the real estate development segment, where revenue grew 96.5 per cent to US$16.7 million from US$8.5 million, in the three months ended December 2021. 

 

Revenue growth in the real estate segment was attributed to StarCity and Pun Hlaing Estate, but dragged by the temporary suspension of the Yoma Central project in June 2021. 

 

Sold units at StarCity and Pun Hlaing Estate registered an increase in unrecognised revenue of US$28.2 million as at Dec 31, up from US$20.2 million as at Sep 30. The commencement of the City Villas project and the acceleration of construction progress at City Loft @ StarCity and The Hills in the last quarter also led to a significant increase in real estate development revenue, Yoma added.

 

In the real estate services segment, revenue improved year on year, rising 9.1 per cent to US$2.4 million from US$​ ​ 2.2 million. This was due to an increase in commercial leasing revenue, which was slightly offset by lower residential leasing revenue.

 

For the financial services segment, revenue grew 335.7 per cent on year to US$6.1 million from US$1.4 million, following the acquisition of Telenor Group&rsquo s 51 per cent interest in Myanmar-based fintech Wave Money in December 2022. Wave Money&rsquo s revenue for the quarter grew by 35 per cent year on year, contributing US$5 million towards the segment&rsquo s revenue.

 

However, in the same segment, Yoma Fleet&rsquo s revenue continued to be impacted by early lease terminations, contract renewals and extensions at lower rates, and import restrictions. 

 

Third-party assets under management as at Dec 31 stood at US$39.2 million, with the fleet shrinking by 13 per cent to 1,144 vehicles. The daily rentals business nonetheless experienced year-on-year growth, with the resumption of domestic travel.

 

Meanwhile, revenue from Yoma&rsquo s food and beverage (F& B) segment continued to grow significantly.

 

This was driven by robust consumer demand from the holiday season, marketing campaigns and in-store promotions, and a larger operating platform with fewer operational disruptions. Yoma also noted that two of its businesses, KFC and YKKO, increased prices during the quarter to counter inflationary cost pressures.

 

Yoma Motors was impacted by import restrictions and challenges with customs clearance for vehicles and spare parts. Revenue for the segment fell to US$2.2 million, down by 21.4 per cent from US$2.8 million in the same quarter in 2021.

 

Yoma in February 2022 announced a change of its financial year end from Sep 30 to Mar 31. Its financial reporting period for FY2022 will therefore span 18 months, from Oct 1, 2021, to Mar 31, 2023. 

 

The company expects robust consumer demand for Yoma Land and Yoma&rsquo s F& B businesses, which will contribute positively to its results in upcoming quarters. 

 

&ldquo Given the overall macro environment, the group will remain prudent in our business planning and balance sheet management for the foreseeable future,&rdquo said Yoma chief executive Melvyn Pun.