Genting Bhd posts 59.9 percent rise in net profit in 16Q3

Genting Berhad saw its net profit rise 59.9 percent year-on-year to RM 577.21 million (US$129.9 million) in 16Q3, mainly due to lower net fair value loss on derivative financial instruments and lower impairment losses.

The Malaysian based operator said its revenue grew slightly by 0.8 percent to RM 4.7 billion in the quarter, compared to RM 4.6 billion in the prior year period.

For the nine month period ended September 30, Genting said net profit was down 4.5 percent to RM 1 billion, while revenue increased 3.3 percent to RM 13.6 billion compared to the year before.

As a diversified conglomerate, Genting's businesses cover leisure and hospitality, plantation, power, property, as well as oil and gas. Its leisure and hospitality business derives revenue from Malaysia, Singapore, the U.K. and the U.S.

Genting said it saw a 2 percent increase in revenue from its leisure and hospitality businesses across all countries it operators in the third quarter of 2016 except Singapore, which saw a  8.6 percent drop in revenue in the quarter.

Looking into the future, the company said its gaming and entertainment division in Malaysia will be focusing on operational efficiencies for the upcoming reopening of the theme park in the fourth quarter.

The operator also said it expects the demand for international tourism to remain positive, but the regional gaming industry continues to face challenges, particularly in the VIP segment.

“The group continues to be cautious on the near term outlook of the leisure and hospitality industry, but remains positive on the longer term,” it said.

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