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Genting slips into the red in Q3

Genting slips into the red in Q3

The logo of Genting Malaysia Berhad is seen at Genting Highlands at the state of Pahang outside Kuala Lumpur December 17, 2013.(Photo: Reuters/Samsul Said)

KUALA LUMPUR: Genting Bhd slipped into the red with a net loss of RM275.80 million (US$65.88 million) in the third quarter, compared with a net profit of RM190.04 million in the same period last year.

Revenue, however, rose to RM5.38 billion from RM5.04 billion previously, mainly from higher revenue from the leisure and hospitality segment in Malaysia and plantation and property segments.

In a filing with Bursa Malaysia, Genting said revenue from Resorts World Genting increased by 26 per cent year-on-year in the third quarter. The plantation division’s overall revenue rose 63 per cent due mainly to downstream manufacturing, while revenue from the property division jumped by 40 per cent.

Genting said the group's loss before tax was RM268.6 million compared with profit before tax of RM818 million the same period last year. 

This was due mainly to the impairment loss of RM1.83 billion on Genting Malaysia Bhd group’s investment in the promissory notes issued by the Mashpee Wampanoag Tribe to finance the Tribe's development of an integrated gaming resort in Taunton, United States.

Moving forward, Genting expects the announcement of a revision in casino duties and casino licence fee in the 2019 Budget to impact Genting Malaysia Bhd's earnings next year. 

"The Genting Malaysia Bhd Group is reviewing its marketing strategies and will streamline its operations and cost structure to mitigate the impact of the tax increases," it said.

No interim dividend has been proposed for the third quarter.

Meanwhile, in a separate filing, Genting announced that its deputy chairman and non-independent executive director Mohammed Hanif Omar will retire on Dec 31.

It also said two independent non-executive directors, namely Dr Lin See Yan and Chin Kwai Yoong, will retire from the position at the conclusion of the next annual general meeting of the company in 2019, in accordance with the constitution of the company.

"They are not seeking for re-election," it said.

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