KUALA LUMPUR: Magma Group Bhd, a hospitality company, posted a net loss of RM1.8 million for the second quarter of 2024, an improvement compared to a net loss of RM3.02 million in the same period in 2023.
The company's revenue increased 42 per cent, reaching RM6.9 million, up from RM4.9 million.
This was primarily driven by enhanced performance in its hotel operations, particularly due to the addition of WOLO Kuala Lumpur to its portfolio.
The hotel segment alone generated RM6.34 million in revenue, up from RM2.54 million previously.
"The narrowing of losses is largely contributed by stronger revenue contribution of the hotel operation and Management segment, and effective cost management strategies," it said.
Magma managing director Datuk Seri Thomas Liang Chee Fong said the growing consumer confidence, pent-up travel demand, and adaptable business models are expected to drive positive progress for the industry in the near future.
He added that the company is committed to improving its offerings to better capitalise on the recovering tourism market.
"We are committed to maintaining this momentum and continuing to improve our financial performance in the coming quarters," he said.
Magma announced that it was conducting a fund-raising initiative by issuing redeemable convertible notes to raise up to RM100 million.
"It will enhance the company's financial position, enabling it to repay existing bank borrowings, invest in the refurbishment and upgrading of its hotel facilities and support working capital needs.
"This strategic move reflects Magma's commitment to strengthening its balance sheet and driving sustainable growth across its core business segments," it added.