Genting Malaysia net profit soars in 16Q4

Genting Malaysia saw its net profit increase four-fold to RM1.7 billion (US$382.8 million) in the fourth quarter ended Dec. 31, 2016, compared to RM 338.6 million in 15Q4.

Revenue for the quarter was RM2.3 billion, down 0.4 percent year-on-year.

The huge jump in profit was attributed to a one-off gain of RM1.3 billion from the sale of its 16.8 percent stake in Genting Hong Kong and better operational performance.

“In Malaysia, the group remains focused on the development of the Genting Integrated Tourism Plan (GITP), with some offerings opened last year. The remaining attractions and facilities under the GITP will open progressively in 2017.

“Meanwhile, the group will continue to improve on overall operational efficiencies and service delivery, as well as to optimise yield management and database marketing efforts to grow volume of business and visitations,” said the company.

Genting Malaysia said it would also continue to strengthen its foothold in the US and UK after its US and Bahamas business unit saw reduced revenue and profit due to lower business volume. It’s UK operations were affected by unfavorable foreign exchange movement of the pound against the ringgit.

Genting Malaysia on the other hand said it saw higher volume and lower operating costs relating to mid to premium players, despite a challenging operating environment in the quarter.

Full year net profit jumped 129 percent to RM2.9 billion, up from RM1.3 billion in the prior year, while full year revenue rose 6 percent to RM 8.9 billion in 2016.