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Genting Malaysia reports jump in 16Q2 profit

Casino operator Genting Malaysia has reported solid performance in the second quarter of 2016, helped by strong results in its UK casino operations, according to the firm’s announcement on Thursday.

Total revenue in the quarter increased 13 percent year-on-year to RM 2.2 billion ($544.6 million) in 16Q2, while net profit more than doubled to RM 465.3 million in the quarter.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 52 percent to RM 662.2 million compared to 15Q2.

The group said the higher revenue and EBITDA in the second quarter was mainly contributed by an improved hold percentage for the mid to premium segment of the business, as well as lower operating costs from this segment.

Genting’s US operations, including Resorts World Casino New York City, and Resorts World Bimini, in Bahamas also recorded higher volumes of business.

The UK operations saw the biggest increase in revenues, contributed mainly by international premium player business, said the company.

“The better performance for this business segment was a result of revised marketing strategies adopted. The UK operations also recorded a substantially improved adjusted EBITDA, resulting from significantly higher revenue aided by some debt recovery.”

For the first half of 2016, the group saw total revenue up 9 percent to RM 4.5 billion, while Adjusted EBITDA increased by 6 percent to RM1.1 billion. Net profit also rose 5 percent to RM 609.4 million.

In a filing to Bursa Malaysia, the group said it will remain focused on its Genting Integrated Tourism Plan in the years ahead, which involves the addition of new facilities and entertainment options at its Resorts World Genting site.

Meanwhile, the firm has given guidance that the 20th Century Fox World Malaysia theme park is scheduled to open by the end of 2017. 

“Management reiterated its guidance that the new facilities [at the property], which include the retail components and additional gaming capacity under the Genting Integrated Tourism Plan (GITP), should begin opening progressively by year-end, while the Fox World theme park would be opened by end-2017,” according to a note from analyst Lim Tee Yang of Affin Hwang Investment Bank Bhd. 

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