Genting sees Q1 net profit fall 79%

PETALING JAYA: Genting Bhd saw net profit for the first quarter ended March 31, 2016 fall almost 79% due to lower adjusted earning before interest, tax, depreciation and amortisation (ebitda), and the absence of a gain in disposal and reversal of previously recognised impairment losses, recorded in the same quarter a year ago.
Net profit for the quarter stood at RM130.83 million, compared with RM620.1 million for the same quarter in 2015.
This was despite revenue almost 7% higher at RM4.7 billion, compared with RM4.4 billion for the same quarter, a year ago.
Resorts World Sentosa recorded higher revenue in the quarter, contributed mainly by the non-gaming segment. The attractions business achieved visitorship of approximately 1.6 million as Universal Studios Singapore recorded its best first quarter performance since opening, in terms of both revenue and attendance. Adjusted ebitda in the quarter was RM590.6 million.
The lower revenue and adjusted ebitda of RM581.3 million from Resorts World Genting in Malaysia was due to lower hold percentage in the premium players business and the impact of the Goods and Services Tax which was introduced on April 1, 2015, that was partially mitigated by an overall higher volume of business.
Higher revenue from the casino business in United Kingdom was due mainly to its premium players business as a result of higher hold percentage offset by lower volume of business. The increase was also due to a stronger Sterling Pound exchange rate to the ringgit. The higher revenue and higher bad debt recovery in the current quarter contributed to a higher adjusted ebitda.