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Genting Bhd Posts an Overall Loss of $40.4 million Ringgit

On December 27th, 2008, Genting Bhd, Asia's biggest listed casino gaming operator posted a quarterly loss of $40.4 million ringgit or about $11.2 million compared with a profit of $275.2 million ringgit a year ago, after incurring charges related to its Chinese power plants and casino facilities in the United Kingdom. The net loss for the 3 months ended September was 1.09 sen per share compared with earning per share of 7.45 sen a year earlier, according to the statement of the company. The revenues improved by seven percent to 2.37 billion ringgit.

Genting, which receives 2/3 of its sales from hotel facilities, gaming and theme parks, has invested in businesses that include producing power and palm oil to cushion swings in casino profit. Genting, which is based from Kuala-Lumpur, Malaysia, expects the rest of 2009 to be challenging. Genting said that their prospects for this year will be challenging, in view of the worldwide economic crisis and smaller commodity prices anticipated.

The slowdown in the economy could affect consumer sentiments and may affect the numbers of tourists to the Genting Highlands Resort. In Britain, the overall outlook is expected to be bleak. Pretax profit at the plantations unit, Genting's 2nd biggest earner, drops to 130.8 million ringgit from 131.3 million ringgit. Profit from Genting's power division dropped to ninety-six percent to 5.5 million ringgit.

Genting shares have fallen 44% this year, more than forty percent decline in the Kuala Lumpur Composite Index. The stock slide down by 1.8% to 4.44 ringgit at the market's close that day. Genting's assets include the Resorts World Bhd., in Kuala Lumpur, operator of a Malaysian casino and Singapore-listed Genting International PLC, the owner of a license to construct Singapore's second gambling resort.

02/01/2009 19:01 PM

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