The iconic Universal Studios Globe at the entrance. – Resorts World Sentosa Singapore
KUALA LUMPUR: Genting Singapore PLC’s stellar performance, along with the effect of the stronger Singapore dollar, is reflected in Genting Bhd
’s earnings for the first quarter ended March 31, which surged 361% to RM603.06mil.
Genting Bhd, which owns 52.84% in Genting Singapore, told Bursa Malaysia on Monday that improved operating margins and lower impairment on receivables led to Resorts World Sentosa’s (Singapore) better adjusted earnings before interest, tax, depreciation and amortisation (Ebitda).
Genting Singapore announced earlier this month that its adjusted Ebitda surged 47% to S$283.2mil (RM874.04mil). With a S$96.3mil gain on the disposal of its 50% interest in an integrated resort in Jeju, South Korea, its net profit after tax jumped more than fivefold to US$210.2mil (RM648.94mil).
In comparison, Resorts World Genting’s adjusted Ebitda slipped slightly to RM578.2mil due mainly to higher costs related to the premium players business and costs incurred for the new facilities under Genting Integrated Tourism Plan.
The casino business in the UK, meanwhile, brought in lower revenue and adjusted Ebitda due mainly to the weaker pound exchange rate to the ringgit in the quarter.
The adjusted Ebitda from the leisure and hospitality business in the US and Bahamas was lower in Q1 despite higher revenue as the preceding quarter’s adjusted Ebitda had included net reversal of expenses over accrued in previous periods.
Genting Bhd owns 50.68% in Genting Plantations Bhd, which on Monday reported almost a tripling (+197%) in earnings to RM80.06mil in Q1 2017 from the same quarter last year.
Revenue and Ebitda from its plantation business in Indonesia increased in Q1 due mainly to higher palm product selling prices and higher fresh fruit bunches (FFB) production.
Despite the Malaysian plantation business benefitting from higher palm product selling prices and higher FFB production, revenue was lower as these did not translate entirely into external sales (most of its crude palm oil from Sabah operations were sold to Downstream Manufacturing segment for onward processing to refined palm products where a portion was held as stocks as at the end of Q1 2017).
Genting Bhd’s overall revenue rose by a marginal 1.4% to RM4.77bil.
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