Genting Malaysia profit falls 59.4 pct in 17Q2

Wednesday 23rd of August 2017

Casino operator Genting Malaysia said its second quarter net profit fell 59.4 percent year-on-year due to lower Adjusted EBITDA and higher depreciation and amortisation from Malaysian operations.

Net profit for the three months ended June 30 was RM193.4 million (US$45.2 million), compared to RM476.4 million in 16Q2, while revenue in the quarter was up 2.5 percent year-on-year to RM2.3 billion. Adjusted EBITDA declined 19 percent to RM535.1 million.

Genting said its Malaysian leisure and hospitality business recorded higher revenue in the quarter, up 7 percent to RM1.4 billion. This was mainly due to an overall higher volume of business, aided significantly by the opening of new attractions at SkyPlaza in March 2017.

The property also saw visitation growth of 8 percent in the quarter, helped by the recent launch of Genting Highlands Premium Outlet and new attractions in SkyPlaza.

The Group’s US and Bahamas operations contributed revenue of RM384.9 million, up from RM351.6 million mainly due to a favourable foreign exchange movement and higher revenues from an improved commission structure with the New York state authority for Resorts World Casino New York City’s gaming operations.

The Group’s UK operations achieved lower revenue of RM 411.2 million for the quarter, down from RM504.2 million, mainly attributable to overall lower volume of business and lower hold percentage from the premium segment of its casino business.

"The outlook for international tourism continues to be positive," said Genting Malaysia in a press release on Thursday.

“Meanwhile, the operating environment for the regional gaming market continues to recover as gaming operators in Macau and Singapore have recently reported improved performances.”

"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 longer term," it added.

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