Genting Malaysia 2Q net profit more than doubles to RM395.71m

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KUALA LUMPUR (Aug 29): Genting Malaysia Bhd’s second quarter net profit more than doubled to RM395.71 million, from RM193.82 million a year earlier, aided by its Malaysian operations..

Earnings per share for the quarter ended June 30, 2018 (2QFY18) rose to 6.99 sen, from 3.42 sen previously, the group said in a filing to the stock exchange today.

Revenue increased 5.7% to RM2.42 billion, from RM2.29 billion in 2QFY17, thanks to a 10% increase in revenue for the group’s Malaysian leisure and hospitality businesses.

The group attributed this to an improved hold percentage in the mid- to premium players segment, and positive reception from the new facilities and attractions under the Genting Integrated Tourism Plan (GITP).

Visitations to Resorts World Genting (RWG) increased 8% in the quarter, thanks to its new mid-hill and hilltop dining, as well as retail and entertainment offerings, while its hotels recorded occupancy rates of 97% in the quarter.

The group also recorded a forex gain on its US dollar-denominated assets of RM29.7 million, as compared to a forex translation loss of RM42.7 million in 2QFY17.

Genting Malaysia has declared an interim single tier dividend of six sen per share, to be paid on Oct 10.

For the first half of FY18 (1HFY18), Genting Malaysia saw a 45.6% increase in net profit to RM753.94 million, from RM517.74 million during the previous corresponding period. 

This was primarily attributable to the overall higher volume of business recorded at RWG.

Revenue for the first half grew 6.8% to RM4.82 billion, from RM4.52 billion in 1HFY17.

On prospects, Genting Malaysia said confidence surrounding international tourism continues to be strong. In line with this, the group said the regional gaming market is anticipated to remain buoyant, supported by expansion of new properties within the region.

The outlook for regional and domestic tourism is expected to remain positive in 2018, the group added.

Genting Malaysia shares closed down 2 sen or 0.39% at RM5.16 today, for a market capitalisation of RM29.2 billion.