This article first appeared in The Edge Financial Daily on May 25, 2018

KUALA LUMPUR: Genting Bhd’s net profit fell 9.8% to RM602.7 million in the first quarter ended March 31, 2018 (1QFY18) from RM668.42 million a year ago, as 1QFY17 had included a gain of RM302.2 million recognised from the completion of the disposal of Genting Singapore PLC’s  50% stake in its associate Landing Jeju Development Co Ltd, as well as a gain of RM85.8 million on disposal of available-for-sale financial assets.

This resulted in lower earnings per share of 15.74 sen in 1QFY18 compared with 17.95 sen in 1QFY17.

Quarterly revenue, however, rose 10.1% to RM5.25 billion in 1QFY18 from RM4.77 billion a year ago, due to contributions from Resorts World Sentosa, Resorts World Genting (RWG), and the plantation and oil and gas divisions.

Going forward, Genting said the ongoing development of the Genting Integrated Tourism Plan at RWG remains the primary focus of the group as it prepares to roll out the new Skytropolis indoor theme park and the highly anticipated Twentieth Century Fox World Theme Park.

“The group will place emphasis on strategic marketing efforts and leverage on the introduction of new world-class facilities and attractions at RWG to expand into regional markets,” it added.

Genting also noted that the Integrated Resorts (IR) Implementation Bill was submitted to the National Debt of Japan for debate on April 27, and debate on this bill will commence within the appropriate time frame this year.

“The progress for the establishment of IRs in Japan has been very encouraging. In this regard, Genting Singapore is actively preparing for the ensuing bidding exercise by the respective government authorities,” it said.

In a separate bourse filing yesterday, Genting Malaysia Bhd announced a 10.6% increase in net profit for 1QFY18 to RM358.24 million from RM323.92 million a year ago, due to higher adjusted earnings before interest, taxes, depreciation and amortisation from the leisure and hospitality business in Malaysia, the US and the Bahamas.

This resulted in higher earnings per share of 6.33 sen in 1QFY18 compared with 5.73 sen in 1QFY17.

Quarterly revenue also grew 7.9% to RM2.4 billion from RM2.22 billion a year ago, on increased revenue from the leisure and hospitality business in Malaysia, mainly contributed by an overall higher business volume from mass to premium segments of the business.