This article first appeared in The Edge Financial Daily on February 28, 2018

KUALA LUMPUR: Genting Malaysia Bhd yesterday announced a special dividend of eight sen per share on top of a final dividend of five sen.

This brings total payout for the year ended Dec 31, 2017 (FY17) to 17 sen, against 16.5 sen in FY16, the group said in a filing with Bursa Malaysia.

Separately, Genting Bhd announced a record-high special dividend of seven sen per share, in addition to a final dividend of six sen. This brings total dividend for FY17 to 21.5 sen per share, compared with 12.5 sen in FY16.

As for the results, Genting Malaysia’s net profit fell 73.35% to RM449.39 million in the fourth quarter of FY17, from RM1.69 billion a year ago, as it previously recognised a RM1.27 billion gain on the disposal of its Hong Kong investment.

Excluding the disposal, the group’s earnings before interest, taxes, depreciation and amortisation (Ebitda) were 10% lower at RM669.6 million, versus RM743.6 million in 4QFY16, due to foreign exchange translation losses and lower revenue from Resorts World Casino New York City.

This was despite a 11.44% increase in quarterly revenue to RM2.54 billion from RM2.28 billion due to higher contribution from its leisure and hospitality business in Malaysia and an increase in casino business revenue in the UK and Egypt.

For the full FY17, the group’s net profit halved to RM1.16 million from RM2.88 million in FY16. This was mostly due to foreign exchange translation losses, excluding which the group would have seen a 3% decline in Ebitda.

Full-year revenue rose 4.45% to RM9.33 million from RM8.93 million on higher revenue from the group’s leisure and hospitality businesses in Malaysia, the US and the Bahamas, as well as higher contribution from the UK and Egyptian casino business.

Over at Genting Bhd, 4QFY17 net profit plunged 88.26% to RM133.15 million, from RM1.13 billion in 4QFY16, on greater net foreign exchange losses as well as a one-off disposal of RM1.3 billion of Genting Hong Kong previously.

However, quarterly revenue rose 10.64% to RM5.26 billion from RM4.75 billion on higher contributions from its leisure and hospitality businesses in Malayisa, the UK and Egypt, its power division, and its oil and gas division.

This was partially offset by lower contributions from its US and Bahamas business and its plantation segment.

For the full FY17, Genting posted a 9% increase in revenue to RM20.02 million from RM18.36 million on similar factors, but net profit declined 31.84% to RM1.45 billion from RM2.12 billion.