KUALA LUMPUR, MY / ACCESS Newswire / November 27, 2025 / Magma Group Berhad ("Magma" or the "Company"), a Malaysian conglomerate and investment holding entity rooted in hospitality, with a growing presence in property development and related sectors, today announced its unaudited financial results for the third quarter ended 30 September 2025 ("Q3 FY2025"). The Company has completed the clearance of legacy impairment items during the quarter, providing a cleaner balance sheet and enabling a more focused approach to its ongoing operational and strategic initiatives.
The Group recorded revenue of RM0.969 million, primarily supported by hotel operations and hotel management activities, compared to RM8.289 million in the corresponding quarter last year. The decline was mainly attributable to a one-off non-cash accounting adjustment arising from the entire write-off of development costs for the Impiana Cherating project.
During the quarter, Magma registered a loss before tax of RM41.271 million, compared to RM2.455 million in Q3 FY2024. This loss was almost entirely driven by the final impairment of RM43.612 million relating to the discontinued Cherating development. Importantly, this marks the completion of all impairment requirements associated with the legacy project, with no further impairments expected going forward. Excluding this one-off impact, Magma's hospitality operations continued to show resilience with RM1.179 million in profit after tax ("PAT"), with stable revenue contributions from hotel rooms, F&B, and management fees.
Magma also progressed key corporate initiatives during the quarter. In particular, the Group announced the proposed disposal of its 20% equity stake in Heritage Land Sdn. Bhd. ("HLSB") for RM63 million. The disposal will bring significant strategic and financial advantages, including the repayment of RM45 million in borrowings, strengthening of its balance sheet, and redeployment of capital into Magma's existing hospitality and property initiatives, including new development opportunities. The improved gearing profile will enhance financial flexibility while reducing interest expenses over the medium term.
Dato' Sri Thomas Liang Chee Fong, Group Managing Director cum Group Chief Executive Officer of Magma Group Berhad commented, "This quarter marks an important transition for Magma as we move from restructuring to revitalisation. With a stronger financial base and a clear strategic direction, we are now better positioned to accelerate growth, particularly in hospitality-driven and urban development assets. Our focus remains on delivering sustainable results and long-term value creation."
Looking ahead, Magma remains cautiously optimistic as Malaysia's tourism and property sectors continue to gain momentum. The Group anticipates its hospitality segment to benefit from increased international arrivals and domestic travel activities, while its property development plans are expected to strengthen recurring income streams over the medium term.
With the Group's financial foundation now reinforced and a growing portfolio of high-value urban projects, Magma is entering its next phase of expansion with confidence, guided by prudence, strategic execution, and a commitment to building long-term shareholder value.
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ABOUT MAGMA GROUP BERHAD
Magma Group Berhad is a Malaysian conglomerate and investment holding entity rooted in hospitality, with a growing presence in property development and related sectors. The Group's core activities include hotel and resort operations, property investment, hotel development, and the provision of professional management services to the hospitality industry. Its key subsidiaries, Magma Hospitality Management Sdn. Bhd. and Magma Property Sdn. Bhd., anchor a diversified portfolio that reinforces Magma's position as a leading player in Malaysia's hospitality and property landscape, while also expanding into lifestyle retail through its joint venture with CHAGEE Malaysia.
For more information, visit https://www.magma.my/.
Issued By: Swan Consultancy Sdn. Bhd. on behalf of Magma Group Berhad
For more information, please contact:
Jazzmin Wan
Email: j.wan@swanconsultancy.biz
Xinyi Ching
Email: x.ching@swanconsultancy.biz
SOURCE: Magma Group Berhad
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