Business

Friday August 29, 2008

Genting profit down despite higher revenue

By LOONG TSE MIN


It attributes the fall in second quarter to smaller one-off gains

PETALING JAYA: Genting Bhd posted a 23.4% drop in net profit to RM551.9mil for the second quarter ended June 30, versus a year earlier, despite turning in higher revenue.

Its pre-tax profit fell 16% to RM770.8mil.

In a statement to Bursa Malaysia yesterday, Genting attributed the lower pre-tax profit to smaller one-off gains from the dilution of the company’s stakes in Resorts World Bhd and Genting International Plc (GIPLC).

Net gain on the dilution of shareholdings in the latest quarter was RM7mil compared with RM298.1mil a year earlier.

However, the rise in profits in its various divisions was in line with their respective revenue growth, the statement said.

For the quarter under review, group revenue grew 9% to RM2.16bil.

“All divisions, except power, reported higher revenues,” Genting said.

The lower electricity generation by the group’s power plants in Kuala Langat, Selangor, and Meizhou Wan in China’s Fujian Province in the second quarter was due to a shutdown of the plants for scheduled maintenance, resulting in a lower revenue.

The leisure and hospitality division’s results comprised revenue from Genting Highland Resort and the GIPLC group’s British casino operations. Increased revenue from Genting Highlands Resort was attributable to its better underlying performance primarily from better “luck factor” from the premium player business and also increased volume, while revenue at the British casinos fell owing to lower volume and reduced percentage win.

Increased revenue at the group’s plantation division reflected higher selling prices for palm products and improved fresh fruit bunches production.

Genting also said the higher average crude oil prices in the second quarter contributed to the increased revenue from the oil and gas division.


GENTING : [Stock Watch] [News]


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