PETALING JAYA: Conglomerate Genting Bhd, whose businesses include gaming, hospitality and plantations, saw net profit for the fourth quarter ended Dec 31, 2010 climb 89.66% to RM465.43mil on contributions mainly from the leisure and hospitality division following the commencement of operations of Resorts World Sentosa in Singapore in the first quarter.
Revenue for the quarter under review jumped 76.14% to RM4.08bil compared with the corresponding quarter a year ago while for the full-year (FY10), net profit increased 110.94% to RM2.20bil from a 70.84% surge in revenue to RM15.19bil.
The company said in an announcement to Bursa Malaysia that the leisure and hospitality division's contribution to the rise in earnings was due to the commencement of operations of Resorts World Sentosa while Resorts World Genting's contribution was due to better luck factor in the premium players business.
However, the company noted that while business volume from the British casino operations had shown improvement compared with the previous corresponding quarter, revenue decreased mainly due to poor luck factor and the weaker pound sterling.
Genting said higher palm product prices contributed to increased revenue while the power division's lower revenue was due to lower electricity generation by both the Kuala Langat and the Meizhou Wan power plants.
The company added that the oil and gas division's lower revenue was due to the disposal of Genting Oil & Gas (China) Ltd last December.
Genting said the full-year's profit before tax of RM4.39bil benefited from a one-off net gain of RM413.6 mil arising from deferred consideration while there was also a net gain on dilution of RM436.3mil arising from the reduction in the company's stake in Genting Singapore plc.
Meanwhile, in a separate announcement, Genting Malaysia Bhd, the operator of Resorts World Genting, said the better performance of the fourth quarter was largely due to contributions from the leisure and hospitality business in Malaysia as well as higher revenue from British operations.
The company's net profit gained 1.06% to RM362.12mil while revenue rose 22.18% to RM1.55bil for the quarter under review compared with the quarter a year ago.
For the full year, the company's net profit fell 3.55% to RM1.27bil while revenue grew 6.83% to RM5.33bil.
Genting Bhd 4Q earnings up 89.6pct to RM465.43m, for FY10 RM2.2b
KUALA LUMPUR: GENTING BHD []’s net profit surged 89.6% to RM465.43 million in the fourth quarter ended Dec 31, 2010 from RM245.4 million a year ago.
It said on Feb 23 revenue rose 76% to RM4.086 billion from RM2.320 billion. Earnings per share were 12.57 sen compared with 6.64 sen while it proposed a final dividend of 4.5 sen compared with 4.20 sen a year ago.
It said the higher revenue was mainly from the leisure and hospitality division with the commencement of operations of Resorts World Sentosa in Singapore, during the first quarter of 2010.
“Revenue from Resorts World Genting in Malaysia increased mainly due to better luck factor in the premium players business. The revenue from the UK casino operations decreased mainly due to poor luck factor and the weaker sterling pound. However, the UK business volume has shown improvement over the previous year’s corresponding quarter,” it said.
Genting said the PLANTATION [] division benefited from higher palm products prices. However, its power division recorded lower revenue due to lower generation of electricity by the Kuala Langat and the Meizhou Wan power plants.
“The higher adjusted EBITDA from the Leisure & Hospitality Division in 4Q2010 was mainly attributable to RWS. RWG’s adjusted EBITDA increased due to higher revenue, whilst the UK casinos’ adjusted EBITDA was affected by lower revenue,” it said.
As for FY10, its earnings rose 110.9% to RM2.202 billion from RM1.044 billion while revenue surged 71% to RM15.194 billion from RM8.893 billion.
Group revenue rose by 71% to record a new high of RM15.19 billion in FY2010 (FY2009: RM8.89 billion), while group profit before tax rose by 74% to post a new high of RM4.39 billion in FY2010 (FY2009: RM2.53 billion).
Group adjusted EBITDA rose by 89% to post a new high of RM7.11 billion in FY2010 (FY2009: RM3.77 billion).
KUALA LUMPUR: OSK Research said GENTING BHD []’s FY10 results were in line with its estimates after adjusting for various exceptional items for 4QFY10.
It said on Thursday, Feb 24 that all of Genting’s divisions apart from the power and oil & gas division reported sequential growth, which drove the group’s core EBITDA 11% higher on-quarter.
“The maiden contribution from Genting Singapore in FY10 was the key driver of Genting’s spectacular 89% on-year full year FY10 EBITDA growth.
“Maintain BUY and TP of RM14.16. The group’s current valuation of 13.2x FY11 PER is attractive against a 3-year EPS CAGR of 18%,” OSK Research said.
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