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Friday, 24 November 2017

(The Star) Genting quarterly profit down

PETALING JAYA: Genting Bhd’s net profit for the third quarter ended Sept 30 fell by about two-thirds to RM191.1mil despite a slight increase in revenue.

The company said that quarterly profits were weighed down by a lowered adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) coupled with a reversal of previously recognised impairment losses in the previous corresponding quarter compared with impairment losses in the current quarter with respect to its casino licences in the United Kingdom.

Third-quarter revenue rose to RM5.04bil from RM4.68bil a year ago.

Topline was supported by an increase in revenue from Resorts World Sentosa due to a stronger VIP and premium mass business volume.

It noted that adjusted Ebitda surged in the quarter from an improved operating margin and lower net impairment on receivables as a result of a more measured credit policy.

The company said that revenue from Resorts World Genting decreased in the quarter due mainly to a lower hold percentage from the mid to premium segments, although overall business volume grew during the quarter.

The company said that the opening of new attractions at SkyPlaza in March 2017 contributed significantly to the increase in revenue from the mass market.

Ebitda decreased due to the lower revenue, higher costs relating to the premium players business and higher operating costs incurred for the new facilities under the Genting Integrated Tourism Plan.

In its UK business, the company said that the increase in revenue and Ebitda from the casino was mainly contributed by an overall higher hold percentage, higher business volume from its premium gaming segment and the stronger British pound in the third quarter.

“However, these were partially mitigated by the higher level of bad debt,” it said.

It said that revenue and Ebitda from the leisure and hospitality business in the United States and Bahamas increased due mainly to an improved commission structure with the New York state authority on the Resorts World Casino New York City gaming operations.

It was also positively impacted by the lower adjusted loss before interest, tax, depreciation and amortisation from Resorts World Bimini from lower operating costs.