This article first appeared in The Edge Financial Daily on November 29, 2019

KUALA LUMPUR: Genting Bhd and its 49.45%-unit Genting Malaysia (GenM) have posted a profit for the third quarter ended September (3QFY19) against losses for the same period last year, given the lack of a RM1.83 billion impairment loss that the latter took last year on its investment in promissory notes issued by the American Mashpee Wampanoag Tribe.

Genting made a net profit of RM305.68 million or 7.94 sen per share versus a net loss of RM275.8 million or 7.18 sen per share for the same period last year.

The conglomerate also attributed its improved results to a reversal of provision for termination-related costs of RM101.4 million by GenM for the current quarter, relating to the outdoor theme park at Resorts World Genting, as well as a net gain of RM36.8 million on the derecognition of an associate and a joint venture during the quarter.

Genting’s revenue, however, dipped 1.61% to RM5.29 billion, from RM5.38 billion.

In a statement accompanying the release of it results, GenM said, “The company has renegotiated the claims with certain contractors following the settlement agreement with 21st Century Fox in July 2019 and determined that the provision of RM101.4 million is no longer required.”

GenM’s net profit for the quarter amounted to RM410.84 million on a slight 1.11% rise in revenue to RM2.63 billion. For the cumulative nine months, GenM’s net profit increased to RM1.1 billion from RM739.73 million for the corresponding period last year, with its nine-month revenue 7.34% higher at RM7.96 billion.

Its parent Genting doubled its earnings for the cumulative nine months to RM1.48 billion or 38.1 sen a share, from RM710.42 million or 18.53 sen a share last year, as revenue grew 5.55% to RM16.31 billion, from RM15.46 billion.

GenM said the outlook for regional gaming is expected to be challenging, particularly in the premium players business, due to the ongoing macroeconomic uncertainties. International travel is expected to remain modest, while domestic tourism will closely correlate with the economic performance and outlook of the country. It said the outdoor theme park in Genting Highlands is progressing well.

Genting said in Singapore, the planning for Resorts World Sentosa’s mega expansion plans or RWS 2.0 is well in progress, as Genting Singapore Ltd prepares to commence construction in the second half of 2020.

For Genting Singapore, “Japan remains its key focus for medium-term growth and value creation to its shareholders,” Genting said, adding that the Japan government has recently unveiled the draft of national guidelines for establishing an integrated resort, and public consultation is in progress.

With offices in Tokyo and Osaka anchored by local teams, Genting Singapore has been working diligently and making extensive preparation works for the formal bidding process, the request for proposal, to be issued by cities.

Genting said in the US, the construction of Resorts World Las Vegas LLC (RWLV) continues to progress well and is projected to open in the summer of 2021. As at Nov 8, 2019, RWLV completed the concrete works for both the West and East Towers and the exterior curtain walls were installed up to the 67th floor out of 69 floors of both towers.