Genting HK posts US$2.1 bln profit on accounting gain

Mar 18, 2016 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Genting Hong Kong Ltd, an operator of casino cruise ships and a joint venture casino operator in the Philippines, posted a net profit of US$2.1 billion for full-year 2015, compared to US$384.5 million in the previous year.

The Hong Kong-listed firm said the increase in net profit was mainly attributable to, among other factors, a total gain of about US$658.8 million “from disposals of certain stakes” in Norwegian Cruise Line Holdings Ltd (NCLH) and a one-off accounting gain of US$1.6 billion recognised upon the reclassification of NCLH as an “available-for-sale investment”.

Genting Hong Kong – part of Malaysia-based Genting Group – reported total turnover of nearly US$690 million, up by 20.9 percent from the prior year. Total operating expenses – excluding depreciation and amortisation – increased 29.7 percent year-on-year to US$528.4 million.

The firm achieved earnings before interest, taxation, depreciation and amortisation (EBITDA) for 2015 of US$6.2 million, down 87.3 percent compared to US$48.9 million in 2014.

Revenue from non-cruise activities decreased 7.4 percent year-on-year to US$37.1 million in 2015, “primarily due to lower income from aviation, travel agent and the international marketing activities in relation to our Manila operations,” said Genting Hong Kong.

In Thursday’s filing, Genting Hong Kong said that the profit it realised from Travellers International Hotel Group Inc – a venture with a Philippines partner that operates the Resorts World Manila casino resort in the Philippines’ capital – fell 35.3 percent to US$33.9 million.

This was “primarily due to the decrease in gaming volume at Travellers during the period,” said Genting Hong Kong.

Travellers International reported net revenues of PHP24.6 billion (US$529.1 million) for 2015, down 15.3 percent from the previous year.

Genting Hong Kong said revenue from cruise and cruise-related activities increased 23 percent year-on-year to US$652.8 million in 2015. “Passenger ticket revenue increased significantly in 2015 due to the contribution from Crystal Cruises,” said the firm.

In March 2015, Genting Hong Kong announced a deal to acquire U.S.-based Crystal Cruises and its subsidiaries for a total consideration of US$550 million.

In November Genting Hong Kong launched Dream Cruises, a new cruise line “conceived in and built for Asia”. The firm says it will position Crystal Cruises for the ultra-luxury segment; Dream Cruises for the premium segment; and Star Cruises for the contemporary segment.

The first of two vessels for its Dream Cruises line is scheduled to start sailing in November 2016.

Earlier this month Genting Hong Kong announced the acquisition of three shipyards in Germany. The purchase of three shipyards “is directly complementary” to the acquisition of a German shipbuilding firm late last year, said the Hong Kong-listed firm.

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