PETALING JAYA: 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 yesterday, 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.
Its oil and gas division posted a lower revenue in the quarter due to lower average oil prices.
Meanwhile, Genting Malaysia’s net profit also dipped 25.1% to RM268.29mil in 1Q19 compared to RM358.24mil in the corresponding quarter a year ago on the back of a declining volume of business in the group’s gaming segment from lower incentives offered to customers.
Its revenue jumped 14.2% to RM2.74bil from RM2.4bil a year ago.
“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.
“Additionally, the group will also focus on leveraging the new assets to grow key business segments.
“To this end, the group will place emphasis on intensifying database marketing efforts to optimise yield management, as well as improving service delivery and operational efficiencies at RWG to enhance overall guest experience,” Genting Malaysia said.