Genting records quarterly net profit of RM305.7mil


  • Corporate News
  • Friday, 29 Nov 2019

the company said earnings in the previous corresponding period were affected by an impairment loss of RM1.83bil on subsidiary Genting Malaysia Bhd’s investment in the promissory notes issued by the Mashpee Wampanoag Tribe to finance its development of an integrated gaming resort in the United States.

PETALING JAYA: GENTING BHD has recorded a net profit of RM305.68mil for its third quarter ended Sept 30, compared with a net loss of RM275.80mil in the previous corresponding period.

In a filing with Bursa Malaysia, the company said earnings in the previous corresponding period were affected by an impairment loss of RM1.83bil on subsidiary Genting Malaysia Bhd’s investment in the promissory notes issued by the Mashpee Wampanoag Tribe to finance its development of an integrated gaming resort in the United States.

“There was a reversal of provision for termination-related costs of RM101.4mil by Genting Malaysia in the current quarter, which was related to the outdoor theme park at Resorts World Genting (RWG).

“Genting Malaysia had renegotiated the claims with certain contractors following the settlement agreement with Fox in July 2019 and determined that the provision of RM101.4mil was no longer required.”

Genting’s revenue in the third quarter was slightly lower at RM5.29bil compared with RM5.38bil a year earlier, mainly due to lower revenue from Resorts World Sentosa’s (RWS) gaming segment.

“Its non-gaming businesses performed well despite a change in the international visitor arrival mix. Daily visitations to its key attractions at RWS exceeded 23,000 and its hotels continued to outperform industry benchmarks at an average occupancy rate of 94%.”For the nine-month period ended Sept 30, Genting’s net profit doubled to RM1.47bil from RM710.42mil in the previous corresponding period, while revenue grew to RM16.31bil from RM15.46bil a year earlier.

On its prospects for the remainder of its financial year, Genting said the ongoing development of the outdoor theme park was progressing well and Genting Malaysia remained focused on its timely completion. “The Genting Malaysia group will also continue placing emphasis on leveraging its quality assets to grow key business segments. These include the rollout of virtual reality-based attractions to supplement and expand the breath of offerings of the Skytropolis Indoor Theme Park, as well as the introduction of additional events to drive traffic growth to RWG.”

Meanwhile, Genting Malaysia recorded a net profit of RM410.84mil in its third quarter ended Sept 30, compared with a net loss of RM1.49bil in the previous corresponding period, while revenue increased to RM2.63bil from RM2.60bil a year earlier.

Genting Malaysia said in its filing with Bursa Malaysia that the higher revenue was due to its leisure and hospitality business in Malaysia growing by RM91.6mil or 5%, mainly attributable to an improved hold percentage in the mid to premium player segments.

“Nevertheless, adjusted earnings before interest, tax, depreciation and amortisation decreased to RM537.5mil, mainly due to higher casino duties. RWG also registered a fall in the overall volume of business in the gaming segment, primarily due to lower incentives offered to customers.

“In the period, the group recorded a further reversal of provision of RM101.4mil, following the settlement of the litigation associated with the outdoor theme park.”

For the nine-month period ended Sept 30, Genting Malaysia reported a net profit of RM1.10bil compared with a net loss of RM739.73mil previously, while revenue grew to RM7.96bil from RM7.42bil a year earlier.

On its prospects, Genting Malaysia said the outlook for international travel is anticipated to remain modest.

“Domestic tourism will be closely correlated to the economic performance and outlook of the country. Meanwhile, the outlook for regional gaming is expected to remain challenging, particularly in the premium players business, due to ongoing macro-economic uncertainties.

“The group remains cautious on the opportunities and growth potential of the leisure and hospitality industry, ” it said.

Genting closed 12 sen lower to RM5.85, while Genting Malaysia ended down two sen to RM3.11.

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