KUALA LUMPUR (Feb 27): Genting (M) Bhd’s net profit for the fourth quarter ended Dec 31, 2019 (4QFY19) fell to RM299.74 million, from RM720.14 million a year earlier, when there was a huge tax credit of nearly RM304 million.
The group’s operating profit was down 14.48% to RM378.87 million from RM443.02 million, on higher expenses and higher cost of sales, offset by a net gain of disposal of investment properties.
Also dragging net profit was higher finance costs, and presence of share of losses in an associate, its financial results showed as per its stock exchange filing today.
Quarterly earnings per share fell to 5.3 sen, from 12.74 sen in 4QFY18.
Operationally, the group recorded weaker performance in its leisure and hospitality division across all locations, and the property segment in the quarter.
Quarterly revenue fell 2.59% to RM2.44 billion, from RM2.51 billion previously, on weaker Malaysian contribution.
The group has declared a special dividend of nine sen per share, bringing full FY19 dividend to 20 sen — up from 19 sen in FY18.
For the full-FY19, Genting Malaysia’s net profit stood at RM1.4 billion, from losses of RM19.59 million in FY18, where there were impairments worth RM2 billion.
Operating profit fell 12.86% to RM1.83 billion from RM2.09 billion, due to higher expenses and higher cost of sales.
Full-year revenue grew 4.83% to RM10.41 billion, from RM9.93 billion the year before, amid higher contribution from all fronts save for its operations in the UK and Egypt.
On prospects, Genting Malaysia expressed cautiousness in the near term, due to the COVID-19 outbreak. “The regional leisure and hospitality industry will be adversely impacted, including the gaming industry,” it said.
Genting Malaysia shares closed unchanged at RM2.93 apiece today, giving it a market capitalisation of RM17.4 billion.