Genting International profit dips 91%

Net profit came in at us$ 4,04 million, down 91% from us$ 49.3 million a year earlier, also from heftier gaming duties as well as a higher foreign exchange loss. It also saw lower gains from its derivative financial instruments of us$ 13.08 million versus the us$ 47.3 million gain recognized in 2007.

Revenue fell 14% to us$ 123.4 million from us$ 143 million, mainly due to a us$ 20.9 million decrease in revenue from its UK casino operations. The lower patronage there was exacerbated by the weakening of the pound sterling against the Singapore dollar, Genting International said yesterday.

As a smoking ban in all public enclosed areas in England and Wales from July last year had had an adverse impact on its gaming business, Genting International said it had taken steps to address the matter, including modifying its casinos “where possible” to enable access to external smoking areas.

As the largest casino operator in UK, it will also introduce measures to further reduce operating costs to help cushion effects of softer market conditions from the slip in consumer confidence.

In Singapore, Genting International said construction was “on-track” for the integrated resort's soft opening in 2010. At least us$ 1.5 billion in construction contracts had been awarded as at March 31 and it “continues to be confident and optimistic about the prospects of Resorts World at Sentosa”.

Meanwhile, its wholly-owned subsidiary, Genting Stanley Aldeney Ltd, expects to start its online gaming business in the “later part of the second quarter of 2008”. It received its license in March this year, but the permission to “go live” is subject to authorities' approval of its internal control system and gambling equipment.