Net profit at global casino operator Genting Malaysia Bhd fell 9.2 percent year-on-year in the second quarter. Such profit was approximately MYR230.92 million (US$54.66 million), compared to MYR254.43 million in the prior-year period.
The firm declared an interim, single-tier dividend of MYR0.028 for each ordinary share of MYR0.10. It is payable on October 22 to shareholders registered as of September 28 and relates to the financial year ending December 31, 2015. The interim single-tier dividend declared and paid for the corresponding period last year was MYR0.03 per ordinary share of MYR0.10.
The firm said in a commentary on this year’s second quarter results: “Whilst there was a one-off gain arising from a waiver of debt, this was offset by lower group adjusted EBITDA [earnings before interest, taxation, depreciation and amortisation], higher pre-opening expenses for the RWB and GITP developments and higher depreciation and amortisation charges.”
It was referring respectively to Resorts World Birmingham, the group’s new GBP150-million (US$229.2-million) casino resort in the United Kingdom, and to ‘Genting Integrated Tourism Plan’ a 10-year refurbishment programme announced in December 2013 for Resorts World Genting, Malaysia’s first – and so far only – casino resort.
Maybank IB Research Bhd said in a note in July that phase one of the Resorts World Genting revamp plan was expected to cost MYR4 billion.
Genting Malaysia said that in the second quarter its U.K. operations – where it runs a portfolio of mostly small-scale casinos – reported a higher adjusted loss before interest, tax, depreciation and amortisation of MYR99.9 million “as a result of lower revenue and higher bad debts written off”.
At Resorts World Genting, the group registered a lower adjusted EBITDA margin of 33 percent in the second quarter “due to higher costs relating to the premium players business and the impact of GST”, it stated, referring latterly to a 6 percent goods and services tax (GST) imposed on consumers by the Malaysian government from April 1, which also covers casino gambling.
Group wide however, Genting Malaysia recorded a 4 percent growth in revenue during the second quarter, to just over MYR1.98 billion, compared to MYR1.91 billion in the prior-year period.
The group’s U.K. operations reported a 2 percent decrease in revenue to MYR295.4 million “mainly due to lower hold percentage and volume of business in its international markets division”, which caters to the premium players business. Revenue from the group’s United States operations, which include Resorts World Bimini in the Bahamas, increased by 23 percent to MYR310.9 million.
“This was attributable to higher volume of business from both the Resorts World Casino New York City [pictured] and Bimini operations,” said the company.
The group’s adjusted EBITDA earnings decreased by 5 percent to MYR436.0 million in the second quarter, despite the 34 percent increase in adjusted EBITDA achieved by the leisure and hospitality business in the U.S. and foreign exchange gains on the group’s U.S. dollar-denominated assets.
On July 2, Genting Malaysia shareholders approved a mandate to sell the company’s entire 17.81 percent interest in casino ship operator and Philippines casino investor Genting Hong Kong Ltd. Genting Malaysia expects to raise at least US$472.2 million gross from the proposed sale.
On Monday Genting Malaysia said it had issued MYR2.40 billion in medium-term notes under a programme with an aggregate nominal value of MYR5 billion.
Apr 20, 2018Macau’s Judiciary Police said on Friday that a male Macau resident had been detained for alleged involvement in giving false information designed to attract public subscribers to a cryptocurrency...
Apr 20, 2018
Apr 20, 2018
Jan 04, 2018BMM Testlabs “ticks all the boxes” with regard to its...
Dec 08, 2017The regulated casino industry is well versed in dealing...
Oct 23, 2017The presence of some of the leading cloud computing...
Jul 11, 2017The Tokyo local election setback for Japan’s governing...
Jul 06, 2017A multibillion U.S. dollar casino project on Vietnam’s...
”We do not believe that reopening the advance notice nomination deadline [for board directors] is appropriate or justified”
Daniel Boone Wayson
Chairman of the Wynn Resorts board of directors