Net profit of Malaysian conglomerate Genting Malaysia BHD shrank to MYR191.1 million (US$46.5 million) in the third quarter of 2017, dragged down by hefty impairments plus higher expenses and finance costs.
In a disclosure to Bursa Malaysia on Thursday, the casino/plantation conglomerate reported that its net profit plunged 67 percent from MYR 574 million ($139.37 million) in the same period last year.
Revenue, on the other hand, rose 7.7% to MYR5.04 billion ($1.23 billion) from MYR4.68 billion ($1.14 billion) a year ago.
“The Malaysian leisure and hospitality business reported lower revenue in third-quarter 2017 despite higher volume of business aided by the opening of new attractions and facilities under the Genting Integrated Tourism Plan (GITP). This was primarily due to lower hold percentage in the mid to premium players business segment,” the company said.
Revenue from Resorts World Genting (RWG) declined as a result of lower hold percentage from the mid to premium segments.
Adjusted EBITDA fell 25 percent to MYR437.9 million ($106.3 million) in the July to September 2017 period, compared to last year’s MYR482.7 million ($117.2 million).
The number of RWG visitors grew by 25 percent to 6.4 million compared to the same period last year.
Genting Singapore, on the other hand, had robust third quarter revenue that is “supported by stronger VIP and premium mass business volume.” It also reported an increase in its non-gaming segment. Pre-tax profit surged 42.4 percent to MYR1.02 billion ($247.66 million).
Adjusted EBITDA in United Kingdom operations rose 28 percent year-on-year, to MYR53.8 million ($13.06 million), while combined earnings from the United States and the Bahamas rose 181.1 percent year-on-year, to MYR59.6 million (US$14.47 million).
Analysts were divided in terms of how to appreciate Genting BHD’s financial report.
For Japanese credit-debt watcher Nomura, Genting’s third quarter results “were a miss with 
adjusted EBITDA down 19 percent quarter-on-quarter and Malaysia-adjusted EBITDA margin of approximately 25 percent.”
On the other hand, CIMB upgraded its recommendation from “Hold” to “Add” Genting BHD stocks.
“Genting’s 9MFY17 core earnings of RM1.3 billion came in line with our expectations but below consensus, representing 64% and 60% of respective full-year estimates,” CIMB Research analyst Kristine Wong said.
