A disposal of available-for-sale financial assets has boosted Genting BHD’s net profit for the second quarter of the year by as much as 57 percent, the company reported.
In a regulatory filing, Malaysian conglomerate Genting BHD announced that its April to June 2017 net profit expanded to RM456.33 million (US$106.81 million) compared to RM289.82 million ($67.83 million) a year earlier. Revenue in the quarter rose 17.22 percent year-on-year to RM4.95 billion ($1.16 billion).
The group attributed the second quarter growth to its gaming business in Malaysia, Singapore, the UK, and U.S. and the disposal of Genting Singapore PLC Group’s 50 percent interest in its associate, Landing Jeju Development Co Ltd., from which Genting gained RM302.2mil ($70.73 million).
For the first half of 2017, Genting’s net profit surged 153 percent to RM1.05 billion, while revenue grew 9% to RM9.72 billion.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved significantly in the second quarter of the year after all of its major businesses registered stronger EBITDA.
Resorts World Sentosa in Singapore enjoyed a higher rolling percentage in its premium play business, pushing Genting Singapore’s revenue up 31 percent to RM1.8 billion ($421.3 million).
Genting Malaysia’s net profit fell by 60 percent to RM193.4 million ($45.2 million), due to unfavorable foreign exchange (forex) translation and higher operating costs.
“During the quarter, our overall adjusted EBITDA was impacted by a forex translation loss on our US dollar-denominated assets, excluding which our adjusted EBITDA would have declined by 7 percent year-on-year,” Genting Malaysia said.
The casino operator’s UK business also saw lower revenue and EBITDA as a result of a decline in business volume, lower hold percentage in its premium gaming segment and the weaker British pound against the Malaysian ringgit.
In the US, Resorts World Casino New York City posted higher revenue due to improved commission structure with the state authority coupled with the stronger US dollar against the ringgit, which partially offset lower revenue from Resorts World Bimini in the Bahamas.