GGRAsia – Genting HK expects over US$2 bln in 1H profit

Genting HK expects over US$2 bln in 1H profit

Jul 20, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck

Genting Hong Kong Ltd, an operator of casino cruise ships and a joint venture casino developer and operator in the Philippines, said on Friday it expects net profit for the six months to June 30 “of not less than” US$2.1 billion, compared to US$142.2 million for the prior-year period.

The numbers contained in its most recent update did not include the contribution from Travellers International Hotel Group Inc – a venture with a Philippines partner that operates and is expanding the Resorts World Manila casino resort in Manila – and from Norwegian Cruise Line Holdings Ltd (NCLH), Genting Hong Kong said.

The firm said the expected increase in net profit is mainly attributable to, among other factors, a gain of US$599.6 million “from the disposal of certain stakes in NCLH” and a one-off accounting gain of US$1.57 billion “recognised upon completion of a secondary offering of NCLH’s ordinary shares”.

Genting Hong Kong’s interest in NCLH decreased from about 22.0 percent to approximately 17.7 percent, the company said, adding that it now accounts for its share of results and net assets of NCLH as an “available-for-sale investment”.

In Friday’s filing, Genting Hong Kong additionally said that it expects its earnings before interest, taxation, depreciation, and amortisation (EBITDA) for the six months to June 30 to increase compared with that of the corresponding period in 2014 “mainly because of the maiden contribution from Crystal Cruises LLC and an improvement in the … cruise business despite a softer overall gaming performance arising from weakness in the regional gaming industry”.

In March, Genting Hong Kong announced a deal to acquire U.S.-based Crystal Cruises and its subsidiaries for a total consideration of US$550 million.

Genting Hong Kong’s unaudited results for the first half are expected to be announced in August, according to the latest filing.

Genting Hong Kong is part of Malaysia-based Genting Group. Another company of the group, casino operator Genting Malaysia Bhd, approved this month a mandate to sell its entire 17.81 percent interest in Genting Hong Kong. Genting Malaysia said it expects to raise at least US$472.2 million gross from the proposed sale.