KUALA LUMPUR (Aug 29): Genting Bhd’s net profit for the second quarter of its financial year ending Dec 31, 2018 (2QFY18) slipped 16% year-on-year to RM383.52 million from RM454.14 million, dragged by reduced earnings from its overseas leisure and hospitality businesses, as well as lower plantation and power contributions.

Resorts World Sentosa (RWS) in Singapore was impacted by an unfavourable luck factor, despite recording encouraging VIP rolling volume growth in the gaming segment, the group said in a bourse filing today. 

Earnings for its leisure and hospitality businesses in United Kingdom and and Egypt also fell due to higher debt written off, while its US operations and Bahamas’ earnings were affected due to a weaker US dollar-to-ringgit exchange rate.

Meanwhile, performance at its Malaysian plantations were impacted by softer palm products selling prices, as well as lower fresh fruit bunch production. In addition, its power division saw lower earnings from the Banten power plant in Indonesia, mainly due to a weaker US dollar versus the ringgit.

Revenue for 2QFY18 slipped 3% y-o-y to RM4.82 billion from RM4.95 billion, dragged by lower contribution from RWS, as well as its plantations and power businesses. The group declared a dividend of 8.5 sen per share, to be paid on Oct 12.

For the first half of its financial year (1HFY18), Genting reported a 12% y-o-y decline in net profit to RM986.22 million from RM1.12 billion, mainly due to a net fair value loss of RM206.1 million on the group’s financial assets at fair value through profit or loss. This was partially mitigated by higher earnings before interest tax depreciation and amortization and its share of net profit from joint ventures and associates, compared with a share of net loss in 1HFY17.

Revenue for 1HFY18 grew 4% y-o-y to RM10.07 billion from RM9.72 billion, thanks to higher revenue from Resorts World Genting (RWG) and its leisure and hospitality businesses in UK and Egypt, as well as higher revenue from its oil and gas division.

On prospects for its gaming and hospitality businesses, the group remains focused on the development of the Genting Integrated Tourism Plan at RWG in Malaysia. The group is also gearing up to bid for an expansion opportunity in Japan.

Genting shares closed up 3 sen or 0.35% to RM8.70 today, for a market capitalisation of RM33.39 billion.