International edition
September 26, 2021

Asia to drive growth

Genting net profit up 66%

(Malaysia).- Malaysian-based casino operator Genting reported a 66% rise in fourth-quarter net profit, adding growth will be driven by key Asian markets as economic challenges continue to plague Europe and the United States.

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et profit for the three-month period ended December 31 rose to us$ 256.3 million compared with us$ 154.3 million a year earlier, the company said in a stock exchange filing with Bursa Malaysia. Revenue for the same period rose 24% to us$ 1.6 billion from us$ 1.3 billion a year earlier.

Net profit for the period was helped by reversal of a previously recognized impairment loss of us$ 102.3 million related to the UK casino licenses, and a net gain of us$ 21.3 million on its derivative financial instruments. The year-earlier period also included a loss of us$ 48.2 million arising from settlement of interest rate swaps.

"The growth in the global gaming industry in 2011 was mainly driven by key Asian markets and this trend is expected to continue. The premium players business in this region saw robust growth, albeit at a slower rate," the company said in a statement. The company has recommended a final gross dividend of 4.5 sen a share, which is the same as the prior year.

Genting Malaysia, the listed unit that operates Genting's Malaysian casino, said net profit in the fourth quarter fell to us$ 115.8 million from us$ 120.1 million a year earlier, even as revenue rose to us$ 762.8 million from us$ 517.4 million.

Revenue for the period was primarily helped by the contribution from its operations in the U.S., where its Resorts World Casino in New York started operations during the last quarter. The U.S. leisure and hospitality division contributed us$ 213 million to Genting Malaysia's revenue for the quarter.
Genting Malaysia said, since its opening, Resorts World Casino in New York performance has been encouraging and it "expects it to contribute positively to the group."

Last week, Genting Singapore reported a fourth-quarter net profit of us$ 209 million compared with a us$ 119.9 million loss a year earlier, thanks to higher earnings from its integrated resort, as well as lower impairment losses and taxes. "The group is confident that its performance will continue to chart further growth, whilst taking cognisance of the increasingly competitive environment in the markets in which the group operates," Genting Malaysia said.

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