Genting Q1 profit from operations surges 57 percent

Thursday 29th of May 2014

Genting Bhd, a Malaysian conglomerate with interests ranging from gambling to palm oil, said its Q1 pre-tax profit from continuing operations surged 57 percent, boosted by its casino businesses.

Profit rose to RM1,464.2 million ($455.4 million) from RM933.3 million in the same period a year ago. Group revenue gained 20 percent to RM4,693.4 million. Net earnings per share were up 25 percent.

The company is pursuing aggressive expansion plans around the world to reduce its dependence on its Singapore and Malaysian businesses.

The company said its Resorts World Sentosa property in Singapore had seen significant growth in the quarter, helped mainly by higher rolling chip volumes, but warned that the environment there is becoming more challenging. As a result, it’s streamlining its operations and is focusing on new initiatives to improve service.

In the UK, results were “encouraging” and Genting expects to maintain its growth momentum in light of gradually improving economy. It plans to continue to

expand its premium player business in the London casinos and continue the revitalisation of its domestic casino business. Resorts World Birmingham is well on track and is anticipated to open in spring 2015.

Genting said revenue from its leisure businesses in the U.S. had also picked up mainly because of the opening of Resorts World Bimini in June last year, however EBITDA fell because of losses related to the start-up of Bimini.

The group is also in the planning process for a mixed-use development at the former Miami Herald site in Florida.