Stronger Q3 performance by Genting Bhd

to be captioned

KUALA LUMPUR: Genting Bhd’s earnings soared 60% to RM577.21mil in the third quarter (Q3) ended Sept 30 from a year earlier, despite a RM614.8mil drop in contribution from the its investments & others segment.

The group’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) fell 12% to RM1.71bil as a result of that segment’s reversal from a pre-tax profit of RM604.1mil in Q3 2015 to a loss of RM10.7mil in the quarter under review.

The drop in adjusted Ebitda was, however, cushioned by the commendable 19% growth in the leisure and hospitality segment’s profit to RM1.42bil and the more than doubling (+113%) of the plantation segment’s profit to RM147.1mil.

Furthermore, the group’s adjusted Ebitda, despite being lower by RM230.2mil in Q3, was more than offset by a sharp RM241.3mil reduction in impairment losses and a RM117.5mil drop in net fair value loss on derivative financial instruments.

Revenue remained fairly stable, up by a marginal 1% to RM4.68bil.

In the leisure and hospitality segment, Resorts World Sentosa’s (Singapore) contribution to the group’s Ebitda grew 16% to RM713mil, overtaking the Malaysia operations’ shrinking (-3%) input of RM641.2mil.

This was the result of cost efficiency initiatives implemented by the Singapore operations during the preceding quarter as well as lower impairment of trade receivables in Q3 2016. The Malaysian Ebitda slipped due mainly to higher operating expenses for the mid to premium segment of the business.

The UK operations, meanwhile, swung to an Ebitda of RM42mil from an RM86.7mil loss a year earlier. Also doing well was the US and Bahamas market, with Ebitda jumping from RM4.4mil a year earlier to RM24.2mil in the quarter under review.

For the plantations division, both the Malaysian and Indonesia operations performed well due mainly to stronger palm product selling prices despite lower fresh fruit bunches production. The Malaysian contribution to the group’s Ebitda increased 60% to RM125.5mil while the Indonesian business turned around from a RM9.3mil loss previously to earnings of RM21.6mil.

It is also worth noting that the power segment’s contribution improved sharply from RM15.2mil previously to RM96.3mil. This was due to the lower cost of construction incurred for its 660MW coal-fired Banten plant in Indonesia.

For year-to-date (the nine months to Sept 30), Genting Bhd’s earnings of RM1.00bil were slightly lower than the RM1.05bil recorded in the previous year’s corresponding period.

Genting Malaysia Bhd, which also reported its quarterly results on Thursday, said its earnings jumped 70% to RM555.73mil in the third quarter compared with a year earlier as revenue grew 8% to RM2.20bil.

Genting Malaysia owns and operates Resorts World Genting, Resorts World Kijal (Terengganu) and Resorts World Langkawi in Malaysia. Overseas, it operates Resorts World Casino New York City, Resorts World Bimini, Resorts World Birmingham and other casinos in the UK.
.