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Friday, 25 May 2018

(The Star) Genting first quarter net profit falls 9.8% to RM603mil

PETALING JAYA: Genting Bhd’s net profit for its first quarter to end March was down 9.8% to RM602.7mil due to one-off gains recorded during the same quarter a year ago.

The group’s profit in the previous corresponding quarter had included a gain of RM302.2mil recognised from the completion of its disposal of Genting Singapore PLC Group’s 50% interest in its associate, Landing Jeju Development Co Ltd, as well as a gain of RM85.8mil on the disposal of available-for-sale financial assets.

Revenue for the first quarter increased by 10.1% to RM5.3bil on the back of higher revenue from its leisure and hospitality and plantation segments.

In its filing to the stock exchange, the group noted that Resorts World Sentosa recorded higher revenue and adjusted earnings before interest, tax, depreciation and amortisation (ebitda) in the current quarter on the back of healthy growth in volumes across all major business segments.

“The ongoing strategy to focus on affluent regional business proved to be effective, as the mass and premium mass business continued to deliver encouraging results,” it said.

The increase in revenue from Resorts World Genting, it said, was due mainly to an overall higher business volume from the mass to premium segments of the business.

The group said the opening of new attractions under its Genting Integrated Tourism Plan (GITP) had also contributed significantly to the increase in its revenue.

Genting Malaysia Bhd, which also reported its first-quarter results yesterday, saw net profit rising to RM358.2mil, while revenue was up 7.9% to RM2.4bil.

It said its higher revenue was mainly from the leisure and hospitality business in Malaysia, which saw revenue increasing by RM255.2mil contributed by an overall higher business volume from the mass to premium segments of the business.

It added that the opening of new attractions under the GITP also contributed significantly to the increase in revenue, although offset by a decrease in revenue from the casino businesses in the United Kingdom and Egypt.

The group’s increased net profit was due to higher adjusted ebitda from the leisure and hospitality businesses in Malaysia, the US and Bahamas.

“The group remains optimistic on the opportunities and growth potential of the leisure and hospitality industry,” it said.