Genting earnings soar on one-off gain from disposal of investment

PETALING JAYA: Genting Bhd’s earnings jumped 55% to over RM2.15bil for the financial year ended Dec 31, 2016 (FY16), boosted by a one-off gain in the fourth quarter from the disposal of the group’s investment in Genting Hong Kong Ltd.

Revenue was higher by 1.4% at RM18.36bil from RM18.10bil in FY15, it said in a filing with Bursa Malaysia.

The company has declared a final dividend of six sen per share and a special payout of 6.5 sen per share.

Genting said higher revenue from Resorts World Sentosa in the last quarter was largely contributed by improved gaming revenue as a result of a higher rolling win percentage in the premium player business, and the revised strategy to focus on better-margin business.

Consequently, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) improved compared to the previous corresponding period.

“Increased revenue from Resorts World Genting in Malaysia was due mainly to a higher business volume from the mid to premium segment of the business.

“The higher revenue and lower costs relating to the premium player business contributed to improved EBITDA in the fourth quarter of 2016 (Q4’16),” it said.

As for the casino business in the United Kingdom, revenue fell due mainly to the weaker pound sterling exchange rate to the ringgit during Q4’16.

However, this was partially offset by the higher volume of business from its non-premium player segment, as well as a improved contribution from Resorts World Birmingham. However, its EBITDA was marginally higher than that of Q4’15.

As for revenue from the leisure and hospitality business in the United States and Bahamas, there was a decline due mainly to the lower volume of business and lower hold percentage from the operations of Resorts World Bimini in Bahamas.

EBITDA increased in Q4’16 due mainly to a net reversal of expenses over-accrued in previous periods partially offset by the lower revenue.