Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 27): Genting Bhd’s net profit jumped nearly five times to RM655.16 million in the fourth quarter ended Dec 31, 2018 (4QFY18) from RM132.1 million a year ago, mainly due to lower impairment losses, and higher earnings before interest, tax, depreciation and amortisation (Ebitda).

Quarterly revenue grew 2.63% to RM5.4 billion from RM5.26 billion in 4QFY17, according to its stock exchange filing today. Notably, impairment losses for the quarter retreated to RM72.4 million from RM308.8 million a year ago.

Its leisure and hospitality segments in Singapore, the US and Bahamas did better, with stronger pretax profits. Its power, property, oil and gas, as well as investment businesses and others also similarly improved though the improvements were largely offset by losses in its plantation division, which were weighed by weaker palm product selling prices.

The group declared a final single tier dividend of 6 sen per share to be paid on a date to be fixed, and a special single-tier dividend of 7 sen per share, payable on April 8.

For the full FY18, Genting's net profit slid 5.48% to RM1.37 billion from RM1.44 billion a year ago, despite revenue rising 4.13% to RM20.85 million from RM20.03 billion, largely as impairment losses rose to RM2.01 billion from RM675 million previously.

"The decrease was due to higher impairment loss which arose mainly from Genting Malaysia Berhad (GENM) Group’s investment in Notes issued by the Mashpee Wampanoag Tribe of RM1,834.3 million. Profit for FY2017 had also included gain of RM302.2 million recognised from the completion of the disposal of Genting Singapore Ltd (GENS) Group’s 50% interest in its associate, Landing Jeju Development Co, Ltd and a gain on disposal of available-for-sale financial assets of RM226 million," Genting said.

On prospects, Genting cautioned that the operating environment in Malaysia will be challenging as GENM adapts to the new fiscal operating landscape in 2019, following the severity of the casino duty increases announced in the Malaysian Budget 2019.

In Singapore, Genting said RWS is cautious of the ambiguous economic environment and on-going geopolitical friction that is clouding the growth of the Asian gaming and tourism market.

“With reference to Japan Integrated Resort (IR) opportunity, Genting Singapore Ltd (GENS) is looking forward to the Japanese Government publishing detailed regulations for the establishment of IRs,” said Genting, adding that GENS is deploying significant resources on the ground and actively developing bid design and concepts, and engaging with stakeholders to prepare for the formal bidding process, which is expected to commence in the second half of 2019.

Meanwhile, it noted that the construction of Resorts World Las Vegas (RWLV) is progressing well, and that the hotel towers are scheduled to reach their full height (level 68) in the third quarter of 2019. The first phase, estimated to cost about US$4 billion, is targeted to open by the end of 2020.

Shares of Genting closed 12 sen or 1.61% lower at RM7.32, valuing it at RM28.19 billion. Year-to-date, the stock has risen 22% from RM6.

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