KUALA LUMPUR (May 24): Genting Malaysia Bhd (GenM)'s net profit tumbled 55.4% in its first quarter ended March 31, 2016 (1QFY16) to RM161.57 million, even though revenue climbed 5.8% to RM2.21 billion from RM2.09 billion previously.

It saw a net profit of RM362.1 million in the same quarter last year.

In a bourse filing, the theme park and casino operator said the lower net profit was due to lower adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), which has slumped by 31% to RM425.6 million from RM620.3 million in 1QFY15.

The EBITDA fall was due to foreign exchange losses of RM138.8 million on its US dollar denominated assets, as a result of the strengthening of the ringgit against the greenback during 1QFY16, and lower EBITDA from its leisure and hospitality business in Malaysia, the US and the Bahamas.

Further, higher depreciation and amortisation charges, mainly from UK and US operations, also impacted its latest quarterly earnings, besides the fact that 1QFY15's financials had a one-off gain arising from a debt waiver of RM28.7 million.

Earnings per share stood at 2.86 sen against 6.39 sen a year ago.

The higher revenue, meanwhile, was driven by higher contribution from its UK casino business, which surged 49% to RM528.9 million from RM355.7 million a year ago.

Its US and Bahamas segment also recorded a 12% jump in revenue during the quarter to RM350.4 million from RM313.8 million a year earlier, according to its unaudited financial statement filed on Bursa Malaysia today.

Going forward, GenM said the global economic environment is expected to be challenging in 2016.

"Growth continues to slow in the emerging markets while recovery in the advanced economies remains modest. In Malaysia, the economy is expected to grow at a slower pace, underpinned by domestic demand," it added.

According to GenM, the outlook for international tourism continues to be positive, while the regional gaming market is expected to face continuing uncertainties surrounding the Asian premium players business.

"The group maintains a cautious stance on the near-term outlook of the leisure and hospitality industry, but continues to be positive in the longer term," it said.

In anticipation of the progressive opening of the various Genting Integrated Tourism Plan attractions and facilities from the second half of 2016, the group will be ramping up its preparation works and pre-opening activities in the coming months and expects to incur a corresponding increase in pre-opening expenses.

Shares in GenM closed eight sen or 1.85% lower at its two-month low of RM4.25, with a market capitalisation of RM24.09 billion.