Casino operator Genting Malaysia Bhd recorded a two-fold rise in net profit in the first quarter of 2017, aided by lower foreign exchange losses on its US-dollar denominated assets.
Net profit for the first quarter ended March 31, 2017 more than doubled to RM323.5 million (US$75.5 million) from RM161.6 million which was recorded in the previous corresponding period.
Genting said the boost in profits was aided by lower foreign exchange translation losses on its US dollar-denominated assets of RM9.4 million in the quarter, compared to RM138.8 million in 16Q1.
Revenue in 17Q1 grew 0.4 percent to RM2.22 billion from RM2.21 billion in 16Q1, while EBITDA improved 27 percent to RM564.8 million.
Its Malaysian leisure and hospitality business recorded higher revenue in the quarter, though business volumes were lower.
Revenue in its US and Bahamas operations also saw revenue growth, due to an improved commission structure with city’s authority on its gaming operations.
Its UK operations however saw lower revenue and EBITDA due to reduced hold percentage from its premium players business.
Looking ahead, Genting Malaysia said it expects the GITP expansion, once completed to elevate Resorts World Genting’s position as a destination of choice in the region.
“GITP’s remaining facilities and attractions will open progressively from this year onwards, complementing the new and existing attractions.”
It also expects international tourism to remain positive across all regions.
“Global economic conditions are expected to improve, supported by the expansion of economic activity in advanced and emerging markets and expansionary policy decisions in certain major economies. The Malaysian economy is expected to remain on a growth path underpinned by domestic demand.”
“The group remains cautious on the near-term outlook of the leisure and hospitality industry, but remains optimistic on the growth potential of the industry in the long term,” it said.