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Genting 3Q profitable on absence of RM1.83b impairment loss

KUALA LUMPUR (Nov 29): Genting Bhd posted a net profit of RM305.68 million or 7.94 sen per share for the third quarter ended Sept 30 versus a net loss of RM275.8 million or 7.18 sen per share in the same period last year owing to lower net impairment losses in the quarter.

The diversified group pointed out that the loss last year was mainly due to a RM1.83 billion impairment loss by its 49.45%-unit Genting Malaysia Bhd (GenM) in an investment in promissory notes issued by the Mashpee Wampanoag Tribe to finance the tribe’s development of an integrated gaming resort in Taunton, Massachusetts, US.

Genting also attributed higher 3Q earnings to a reversal of provision for termination related costs of RM101.4 million by GenM in the current quarter, relating to the outdoor theme park at Resorts World Genting, as well as a net gain of RM36.8 million on derecognition of an associate and a joint venture during the quarter.

Revenue however dipped 1.61% to RM5.29 billion from RM5.38 billion, according to its filing with Bursa Malaysia yesterday.

For the cumulative nine-month period, Genting’s earnings doubled to RM1.48 billion or 38.1 sen a share from RM710.42 million or 18.53 sen a share last year, as revenue grew 5.55% to RM16.31 billion from RM15.46 billion.

Genting said the ongoing development of the outdoor theme park in Malaysia is progressing well and that GenM remains focused on its timely completion.

In Singapore, the planning for Resorts World Sentosa’s mega expansion plans (RWS 2.0) is well in progress, as Genting Singapore Ltd prepares to commence construction in the second half of 2020.

For its Singapore unit, Genting said that “Japan remains its key focus for medium term growth and value creation to its shareholders”, adding that the Japan Government has recently unveiled the draft national guidelines for establishing an integrated resort, and that public consultation is in progress.

With offices in Tokyo and Osaka anchored by local teams, Genting Singapore has been working diligently and making extensive preparation works for the formal bidding process known as Request for Proposal to be issued by cities.

In the US, construction of Resorts World Las Vegas LLC (RWLV) continues to progress well and is projected to open in Summer 2021.

As at Nov 8, 2019, RWLV has completed concrete work for both the West and East Towers and the exterior curtain walls were installed up to floor 67 of 69 on both towers.

Shares of Genting closed down 12 sen or 2.01% at RM5.85 yesterday, valuing the company at RM22.68 billion.

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