Genting posts lower Q1 net profit on provision

KUALA LUMPUR: Genting Bhd is reviewing spending plans and cost structures in Malaysia following recent hikes in casino duties, while a provision on a terminated project impacted its first quarter earnings.

Earnings in the three months ended March 31 fell 6.8% to RM561.6mil from RM602.7mil made a year ago.

The international gaming and leisure group, which also has plantation, as well as oil and gas divisions, said revenue improved 6% to RM5.57bil during the quarter under review.

Profits during the quarter, the company said in a filing with Bursa Malaysia today, was impacted by the provision for termination related costs of RM198.3mil by Genting Malaysia Bhd (GENM), as well as a loss on a discontinued cash flow hedge.

"In Malaysia, the group will continue to review its capital expenditure requirements and rationalise its operating cost structure to mitigate the impact of the hike in casino duties against an increasingly challenging operating environment," it said.

"Additionally, the GENM will focus on leveraging the new assets to grow key business segments," it added.

The group, however, is forging ahead with massive new investments abroad.

In Singapore, the group has embarked on a re-development investment of S$4.5bil to expand and transform its integrated resort from 2020 onwards.

The group is also stepping up efforts and deploying more resources in preparation to enter the Japanese market.

Meanwhile, Genting also provided an update on its venture in Las Vegas, in the US.

The group also provided an update on its

As of May 9, Resorts World Las Vegas has completed concrete work up to level 65 of the West Tower and level 64 of the East Tower.

"The hotel towers are scheduled to reach their full height (level 69) on July 23," it said.

The group said total development and land costs incurred as of March 31 were approximately US$1.3bil.

"The first phase is estimated to cost approximately US$4.1bil and is targeted to open by the end of 2020," it said.