Genting Malaysia profit plunges 65 pct over domestic ops

Genting Malaysia posted a 65.2 percent  drop in net profit for the three months ended September 30, 2017, due mainly to lower earnings from Resorts World Genting.

Net profit for the three months was RM193.4 million, down from RM555.7 million recorded a year ago.

Genting said the decline in net profit was also due to a reversal of previously recognized impairment losses of RM49.2 million from its UK operations and recognition of a one-off gain of RM43.6 million from the disposal of leasehold land in Malaysia in FY16Q3.

Quarterly revenue however, rose 3.2 percent to RM2.3 billion, mainly due to increases in its casino business in the UK and the leisure and hospitality business in the US and Bahamas.

Its UK casino business reported higher revenue and adjusted EBITDA due to higher volume of business from its premium gaming segments and a stronger sterling pound.

Its leisure and hospitality business in the US and Bahamas saw increases in revenue as well.

In Malaysia, Genting noted that the opening of new attractions at SkyPlaza in March contributed significantly to the rise in revenue from the mass market.

Moving forward, the group said it will be optimizing operational efficiencies and driving revenue growth at Resorts World Genting.

Its parent firm, Malaysian conglomerate Genting Bhd posted a 67 percent drop in net profit for the third quarter of 2017, due mainly to lower earnings from RWG as well as its plant and oil and gas divisions.

Net profit for the three months ended September 30, 2017 was RM191.1 million, while revenue rose 7.6 percent to RM5.0 billion due to higher revenue from all ex-RWG divisions.