GGRAsia – Genting HK issues 2014 profit warning

Genting HK issues 2014 profit warning

Feb 09, 2015 Newsdesk Latest News, Philippines, Rest of Asia, Top of the deck

Genting Hong Kong Ltd – an operator of casino cruise ships under the Star Cruises brand, and a joint venture partner in two Philippine casino resorts – has issued a warning that its profits could fall by as much as 51 percent year-on-year for the year ending December 31, 2014.

But the firm said that the numbers contained in its warning did not include the contributions from associate companies Norwegian Cruise Line Holdings Ltd (NCLH) and Travellers International Hotel Group Inc.

The latter is a joint venture with Philippine-based Alliance Global Group Inc. The partnership developed and operates the Resorts World Manila casino resort and is currently constructing the US$1.1 billion Bayshore City Resorts World in Entertainment City in Manila.

Bayshore City Resorts World broke ground in the autumn and is due to open in the final quarter of 2018, according to a Travellers International statement on October 1.

Genting Hong Kong said that net of NCLH’s and Travellers International’s contribution, it expected to report for 2014 a profit of “not less than US$235 million”. That compared with US$483 million for the year ended 31 December 2013, also excluding NCLH and Travellers International.

The parent said the likely decline in 2014 profit was due to factors including a “reduction in gain arising from disposal of certain stakes in NCLH”. They had amounted to US$452 million in 2013 but reduced to approximately US$153 million in 2014, according to the firm’s interim report issued during last year.

The parent said that it expects its EBITDA (earnings before interest, taxation, depreciation and amortisation) for the year ended December 31, “to remain stable as compared with 2013”.

The audited consolidated results of the group for 2014 are expected to be announced next month.