Genting Net Drops After Sales Fall From Casinos to PowerElffie Chew
Genting Bhd., which controls Southeast Asia’s biggest casino operator, said first-quarter profit fell 43 percent because of lower sales from its Singapore and U.K. gaming resorts as well as plantation division.
Net income for the three months ended March 31 dropped to 397.8 million ringgit ($129 million), or 10.77 sen a share, from 693.6 million ringgit, or 18.79 sen, a year earlier, according to a filing to the Kuala Lumpur stock exchange yesterday. Revenue declined 2.8 percent to 4.13 billion ringgit.
The Kuala Lumpur-based company is the parent of Genting Singapore Plc, which earlier this month reported a 44 percent drop in first-quarter profit to S$115.9 million. Profit from the group’s plantations division dropped on lower palm oil prices, the firm said.
Genting closed 1.4 percent lower to 10.12 ringgit in Kuala Lumpur trading, tracking a 0.3 percent decline in the FTSE Bursa Malaysia KLCI Index. The earnings were released after market closed yesterday. The stock has risen 10 percent this year, compared with the benchmark gauge’s 4.8 percent increase.
Its Genting Malaysia Bhd. unit plans to invest $100 million in the Bahamas Marina project, Lim Kok Thay, chairman of Genting, said at an April 18 conference in Singapore. The subsidiary opened a casino at the Aqueduct Racetrack in New York in October, controls casino operators in the U.K. and owns Resorts World Sentosa, one of Singapore’s two gambling resorts.
The group’s plantation division’s pretax profit fell to 45.1 million ringgit from 98.5 million ringgit in the same period last year while earnings from power climbed to 79.9 million ringgit from 33.3 million ringgit, the company said.