Genting 3Q net profit falls 23.6% to RM352.7 mil, dragged down by US, M'sia biz

-A +A

KUALA LUMPUR (Nov 21): Gaming giant Genting Bhd (Genting)'s net profit in the third quarter ended Sept 30, 2014 (3QFY14), dropped 23.6% on-year to RM352.7 million from RM462.1 million, dragged down by its casino businesses in Malaysia and the US.

Its revenue for the quarter under review appears largely flat, increasing by only a marginal 0.45% on-year from RM4.48 billion to RM4.5 billion, its filing with Bursa Malaysia today showed. 

"Revenue from the Malaysian leisure and hospitality business declined 9% from 3Q13 to RM1,298.8 million, mainly due to a lower hold percentage in the premium players business despite overall higher volume of business," Genting said in a press release.
 
"Revenue from operations in the United States, which includes Resorts World Bimini in the Bahamas, declined by 10% to RM225.9 million largely due to lower contributions from Bimini," it added.

Resorts World Casino New York City also incurred higher payroll costs.

Genting's network of UK casinos, however, fared much better and saw a 66% growth in revenue to RM674.7 million for the quarter, due to high hold percentage in its international markets division and higher volume of business.

Revenue for its plantation business declined by 2% on-year to RM274.1 million, though its power sector saw an almost four-fold growth in revenue to RM164.4 million.

Genting's property segment recorded a 99% increase in revenue to RM97.3 million mainly due to higher contribution from Genting Plantations Bhd, which had higher recognition of property sales and progressive completion of development projects during the quarter.

As for the oil and gas division, Genting saw a revenue of RM75.7 million.

For the quarter, basic earnings per share (EPS) showed a more visible decline of 24.1% from 12.51 sen to 9.49 sen. Unlike a year ago, the company declared no dividend for the quarter.

For the cumulative nine-month period (9MFY14), net profit fell 7.8% on-year to RM1.22 billion versus RM1.33 billion last year, though revenue was up 7% on-year to RM13.59 billion from RM12.71 billion.

Meanwhile,its 9MFY14 EPS stood at 32.91 sen, 8.3% lower than the 35.9 sen posted last year.

Genting closed at RM9.40 today, down 20 sen. This gives it a market capitalisation of RM34.95 billion.