Yoma Strategic Holdings has reported revenue of US$19.6 million ($26.6 million) for the three months ended June, up 2.1% y-o-y from the corresponding quarter the year before.
“The group posted encouraging growth in 3M-Jun2021 driven by strength in property sales during the quarter, despite an overall challenging operational environment in Myanmar,” says Melvyn Pun, Yoma Strategic’s CEO.
Yoma Land saw revenue grow 30.9% y-o-y to $8.9 million for the period, driven by construction activity at Star Villas at StarCity which commenced earlier this year, as well as construction and land sales at Pun Hlaing Estate.
Revenue for the group’s other business segments declined pursuant to the ongoing political and Covid-19 situation.
Revenue for Yoma’s financial services segment declined 10.5% y-o-y to US$1.7 million.
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For Yoma Fleet, the group’s car rental service, fleet size stood at 1,365 vehicles with third-party assets under management of US$42.7 million as at June 30. The group notes that growth is likely to be curtailed in the near-term until additional funding lines can be secured from banks.
For Wave Money, the group’s mobile wallet business, overall revenue and transaction volumes have been affected by the broader slowdown in economic activity, though the company notes that EBITDA remained positive supported by stringent cost control measures.
“Digital transaction volumes and monthly active users have started to recover following the reinstatement of the Wave Pay mobile app on 4G networks from May 3 and recorded month-on-month double-digit growth rates in May,” the group adds.
Revenue for Yoma F&B fell 6.4% y-o-y to $4.4 million. However, following the resumption of services by the delivery aggregators on May 6, the group notes that Yoma F&B has witnessed m-o-m recovery.
Revenue for Yoma Motors fell 23.3% y-o-y to $4.3 million, as the availability of credit from local banks remains limited which impacted its heavy equipment business, while its automotive sales were affected by the closure of registration offices for motor vehicles and dealer showrooms in April.
Looking ahead, the group expects the third wave of Covid-19 cases in Myanmar to severely disrupt economic activities in the country. Public holidays have been declared from July 17 to August 15 and stay-at-home orders have been implemented in 86 townships in 10 regions and states.
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Only healthcare facilities, banks and shops selling basic essentials, medicines and medical supplies are allowed to remain operational, while F&B establishments can only open for takeaway and/or delivery. “These measures are expected to have a severe impact on the Group’s businesses in particular, the F&B and Motor businesses,” the group says.
As at 9.07am, shares in Yoma Strategic are up 0.1 cents or 0.74% higher at 13.6 cents.
