CASINO

Genting Bhd posts strong Q3 offset by UK decline

TAGs: Genting, Genting Malaysia, malaysia, resorts world bimini bay, Resorts World Birmingham, UK

Genting Malaysia Berhad saw its earnings grow despite lower revenue in the third quarter.

Genting Malaysia, in a filing to Bursa Malaysia, said its earnings grew 22.6% to RM326.3m for the third quarter ending Sept 30.

The group’sGenting Bhd posts strong Q3 offset by UK decline earnings before interest, taxes, depreciation and amortization (EBITDA) were up 29% year-on-year to RM744.3m (176.17 USD). Profit before tax was higher by 14% to RM425.7m (100.76m USD).

However, the group’s revenue plunged 9% to RM2.03b, attributable to lower volume of business from its U.K. international market division.

In the U.K., the group’s revenue decreased by 60% year-on-year to RM268.7m (63.6m USD). The company added that it remains cautious on the volatility in the international market division but expects Resorts World Birmingham to contribute positively. The group’s UK casino business incurred a loss of RM86.9m in the quarter, compared to RM145.5m profit in Q3 2014.

Genting’s leisure and hospitality business in Malaysia recorded revenue of RM1.4b (331.36m USD), a 9% increase year-on-year from RM1.3b (307.69m USD).

Higher volume of business from the operations of Resorts World Bimini in Bahamas (“Bimini operations”) as well as the favorable foreign exchange movement of the US dollar against the Malaysian ringgit boosted the US and Bahamas operations. The consolidated revenue from the region saw a 38% increase to RM312.6m (73.99m USD).

“RWNYC [Resorts World Casino New York City] continues to expand its business and lead the New York State gaming market in terms of gaming revenue,” said the company. “At Bimini [Resorts World Bimini], its business volume and visitation level have continued their upward trend since the opening of the initial phase of its new 300-room Hilton hotel in April 2015.”

Genting Malaysia has also confirmed adding $450m to its initial $150m investment in Resorts World Bimini. In exchange for fresh investment, The Government of The Bahamas granted Genting Malaysia options on several new projects, such as lengthening Bimini’s airport runway to 9,000 feet and building another hotel with a minimum of 200 rooms.

 

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