Written by Chua Sue-Ann
Friday, 27 May 2011 12:10
KUALA LUMPUR: Genting Bhd’s 1Q earnings tripled from a year ago even as stronger numbers at Resorts World Singapore (RWS) and its Malaysian plantations more than made up for softer takings from its Genting Highlands resort.
Net income for the quarter ended March 31, 2011 jumped 254.6% to RM824.18 million from RM232.4 million a year ago, while top line rose 57% to RM4.89 billion over the same period.
There may still be a delay in the completion of the second phase of RWS, Genting said in a filing with Bursa Malaysia yesterday. However, it said in a statement accompanying its results that the issue is being “addressed” and resources have been allocated “to catch up with the schedule”.
Bookings for Singapore in 2Q “continue to be encouraging and RWS looks forward to a strong holiday season”, it added.
For Malaysia, while competition for casino dollars remains strong, Genting Malaysia is “cautiously optimistic” of performance at its hilltop resort and will continue to focus on yield management strategies. “[We] will also step up efforts to tap into the regional growth of the premium players business,” it said.
Separately, Genting Malaysia said it will continue to leverage on established links with its businesses in Asia to boost takings at its London casino properties, even as the UK’s economy continues to be challenging.
“The group has embarked on repositioning its product offering in respect of its casino properties outside London,” it said. Already, numbers have improved quarter-on-quarter as the UK business reported a RM60.1 million profit against a RM2.1 million loss in 4QFY10.
Genting Malaysia also said the construction of its US Resorts World New York gaming and entertainment hub continues to make steady progress towards the opening of the first phase scheduled in late 2011. It booked RM13.4 million construction profit from the progressive development of Resorts World New York during the quarter.
Genting rose 16 sen to close at RM11.10 yesterday while Genting Malaysia ended flat at RM3.52.
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