KUALA LUMPUR (Feb 27): Genting Bhd’s net profit in the fourth quarter ended Dec 31, 2019 (4QFY19) fell 19.28% to RM528.82 million, from RM655.16 million a year ago, dragged by taxation and lower gross profit, and as its joint ventures and associates swung to losses.

This was mitigated by a net gain on disposal of UK assets by a subsidiary in the quarter. Earnings per share fell to 13.73 sen, from 17.01 sen in 4QFY18.

Quarterly revenue fell 1.75% to RM5.3 billion, from RM5.4 billion in 4QFY18, on lower revenue from its leisure and hospitality division, power, and oil and gas, offset by gains in its plantation and property division, its filing with Bursa Malaysia today said.

Despite the lower earnings, Genting declared a special dividend of 9.5 sen per share, bringing its full-FY19 dividend to 22 sen, from 21.5 sen in FY18.

For the entire FY19, Genting’s net profit jumped 45.15% to just under RM2 billion, from RM1.37 billion in FY18, when there was a massive RM1.8 billion impairment loss, coupled with the gain on disposal of UK assets.

These were partially offset by higher depreciation and amortisation charges recorded in FY19 from its Singapore division.

Full-year gross profit fell 6.8% to RM7.29 billion, from RM7.82 billion, on higher cost of sales.

As for revenue, Genting posted a 3.66% increase to RM21.62 billion, from RM20.85 billion in FY18, thanks to higher contribution from its leisure and hospitality division, as well as from its plantation and power divisions.

Moving forward, Genting said its FY20 performance for the leisure and hospitality segment may be impacted by the Covid-19 outbreak.

However for its plantation segment, prices are trading above 2019 levels, despite the Covid-19 outbreak. “However, crop production is expected to be moderated by the lagged effects of dry weather conditions across Malaysia and Indonesia in 2019,” it said.

Locally, the Genting Malaysia Bhd group is approaching final stages to complete its outdoor theme park, and pre-opening arrangements are already underway.

Meanwhile in the US, the Resorts World New York City is expected to open its new 400-room hotel in 2H20, the filing added.

Shares of Genting fell 2 sen or 0.39% to RM5.16, giving the group a market capitalisation of RM20 billion.

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