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Genting earnings drop

by [email protected]

Genting Bhd’s net profit fell 6.8% to RM561.65mil in the first quarter ended March 31, 2019 (1Q19) from RM602.7mil a year ago due to termination-related costs of RM198.3mil by its subsidiary Genting Malaysia Bhd, as well as a loss on discontinued cash flow hedge.

In a filing with Bursa Malaysia, the group said the fall in net profit was partially offset by the gain on disposal of Coastbright Ltd, an indirect wholly owned subsidiary of Genting Malaysia.

However, Genting’s revenue was up 6.09% to RM5.57bil in 1Q19 compared to RM5.25bil previously due to higher revenue from various divisions, including plantations, Resorts World Genting (RWG), casino businesses in the United Kingdom and Egypt, as well as leisure and hospitality businesses in the United States and Bahamas.

“The adjusted loss before interest, tax, depreciation and amortisation from investments and other divisions included net foreign-exchange losses on net foreign currency-denominated financial assets which was lower in 1Q19,” the group said.

“However, the impact to the group’s earnings was aided by an exceptionally higher hold percentage recorded in the mid to premium player segment,” Genting Malaysia said.

The group has declared an earnings per share of 4.75 sen for the quarter.

Moving forward, Genting Malaysia remains cautious on the growth potential of the leisure and hospitality industry.

The group noted that it would continue to review its capital expenditure requirements and rationalise its operating cost structure to lessen the impact of the increase in casino duties amidst a challenging operating environment.

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