Malaysian casino firm sees big slump in profit
Posted by Gavin Smith on 01 Jun 2009 at 14:06
A Malaysian hotel and casino company has registered a slump of more than 50 per cent in its first quarter net profit.
Trading markets reported Genting Bhd recorded a 51.5 slide to RM213.12 million (US$60.7 million).
According to Trading Markets, the slump comes after weaker performance from its plantation division, plus impairment loss from Star Cruises Ltd, its Hong Kong listed leisure unit.
For the three months up to March 31, 2009, revenue slipped compared to the same time frame last year.
The good news included higher revenue and profit for Genting Highlands Resort, but Trading Markets also said this was negated by a slip in revenue from its British casinos.
There was also an impairment loss of RM30.4 million in connection with the company's investment in Star Cruises.
Its power interests saw growth in revenue due to the Kuala Langat power plant and higher energy charges, but again this came as its China-based Meizhou Wan plant experienced higher operating cost.
Trading Markets also said lower prices for palm products had hit the firm's plantation division, and its property division was hit by real estate sector conditions. Meanwhile with oil and gas, lower average prices also hurt profits.
Uncertainty on the global economic outlook and how fast the climate will improve could affect Genting's outlook for the rest of the year, the company said.
There is also concern that the firm's Genting Highlands Resort may be hit by consumer worries over the spread of the H1N1 flu virus.
