Genting Bhd, a leisure and hospitality-based group, told Bursa Malaysia on Thursday that the pre-tax profit from ongoing operations this quarter was RM1.08 billion, which increased by 13% compared to last year’s RM954 million.
They said, “The increase was due mainly to higher adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization) of the group contributed mainly by higher net foreign exchange (forex) gains and a reversal of RM186.4 mil in respect of previously recognized impairment losses mainly in respect of the UK casino licenses.”
The Gains of Genting
According to Genting Bhd, the higher profits from Resorts World Genting was due to the result of the higher total volume of the business. The adjusted Ebitda was also higher because of the higher profits and lower costs in relation to premium business players that were partially offset by the impact of taxes on goods and services.
The operation in the UK, on the other hand, where Resorts World Birmingham just recently opened had a loss of about RM86.7 million as opposed to the RM145.5 million previously. Other casino businesses in the UK also had lower profits, resulting in a loss in 83 because of the lower hold percentage and lower volumes from international markets.
When asked about their prospects for the year, Genting said that the Malaysia Bhd group is continuing to focus on improving their profits, operational efficiencies, as well as marketing efforts.
Moreover, the Genting Integrated Tourism Plan (GITP) is working well and it’s offering a new 1,300-room First World Hotel Tower 3 which was opened in June. Other GITP facilities are set to open in the second half of 2016.
Genting Malaysia, which is partly owned by Genting Bhd, announced its Q3 results on Thursday. Their earnings increased by 22.6% year-on-year with RM326.3 million for the quarter ending Sept 30.