Lower impairment losses has pushed Genting Malaysia BHD’s profit higher to RM577.21 million (US$129.93 million) in the third quarter, the company announced before the Bursa Malaysia on Thursday.
For July to September 2016 period, Genting BHD saw its net profit surge by 60 percent from RM361.09 million (US$81.28 million). Genting BHD, however, saw its net profit for the nine-month period drop by 4.5 percent from RM1.002 billion (US$225.55 million) last year.
Genting BHD reported that its Resorts World Sentosa saw its gaming and non-gaming attractions drop in the third quarter. However, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) improved year-on-year arising from cost efficiency initiatives implemented during the preceding quarter, as well as lower impairment of trade receivables in July to September period.
As for its Resorts World Genting, Genting BHD said that its Malaysian business saw higher revenue as a result of higher hold percentage from the mid to premium segment of the business even though business volumes were lower.
EBITDA of Resorts World Genting, on the other hand, was lower due mainly to higher operating expenses for the mid to premium segment of the business.
Genting Malaysia’s UK operations posted “strong growth in revenue and adjusted EBITDA,” according to the Malaysia-based firm.
“This was mainly contributed by its premium players business which recorded a better hold percentage. There was also higher debt recovery during the quarter,” the firm added. “In spite of the improved operational performance, revenue and adjusted EBITDA [in U.K. operations] were dampened by the unfavorable foreign exchange movement of the British pound against the Malaysian ringgit.”
U.S. and Bahamas businesses positively contributed to Genting BHD’s coffers, with its revenues rising due to a surge in the volume of business from the operations of Resorts World Casino New York City (RWNYC) and Resorts World Bimini in Bahamas.
Consequently, EBITDA increased due to higher revenue and lower operating expenses from its Bimini operations.
Genting Malaysia also shrugged off unfavorable foreign exchange (forex) translation resulting in a lower group’s overall adjusted EBITDA of RM582.7 million (US$131.17 million)), which was 22% lower than a year earlier.