Genting Malaysia, the entertainment conglomerate recently announced that it has had a strong second quarter and its net profit rose to 294.7 million ringgit, which was a 334 percent increase when compared to the second quarter in 2015. The main reason for the strong performance was due to the growth the company experienced in its plantation and leisure business ventures. The company made 4.23 billion ringgit during the second quarter of 2016, which was a 1.4 percent revenue growth when compared to the same quarter in 2015.
Genting reported in a filing with the local stock market, the Bursa Malaysia that its casino division made 3.62 billion ringgit in total revenues, which was an increase of around 4 percent during the second quarter. Genting’s casino division is responsible for contributing the bulk of the company’s revenues and generates more than 85 percent of total revenue. The biggest contributor to the casino business is the Resorts World Sentosa, an integrated casino resort in Singapore.
The casino is responsible for contributing as much as 39 percent of total casino revenue. Resorts World Sentosa brought in 1.4 billion ringgit during the second quarter, which was a decline of around 10 percent brought on due to the low win percentage experienced in the casino’s premium market. However the decline in second quarter revenue at Resorts World Sentosa was offset by gains from other casino venues.
Genting’s Malaysia casino operations saw an increase of 55. 3 million ringgit which was a 4 percent increase, its UK business brought in 208.8 million ringgit, an increase of around 71 percent and its Bahamas and U.S casino operations had an increase of 40.7 million ringgit which was a 13 percent increase. The strong performance in these countries was mainly due to the rise in business volumes, higher contributions coming in from the premium market and innovative marketing strategies.
In a statement, Lim Tee Yang from Affin Hwang Capital said: “We believe the group’s earnings growth momentum would depend on the speed of recovery in consumer sentiment and commodity prices.”
Genting’s reported an increase of 5 percent in total revenues for the first half of the year. The main reason for the increase was due to the strong performance of its UK casino business, which brought in 1 billion ringgit, an increase of 59 percent and its performance in the power sector which brought in 558.4 million ringgit, an increase of 42 percent.
The company plans to focus its attention on the Genting Integrated Tourism Plan which will be implemented at Genting Malaysia. The plan includes upgrading facilities at Resorts World Genting over a 10 year period that will see new facilities being added and more entertainment operations being introduced. The company also plans on implementing a number of new initiatives such as its contactless mobile payment services targeting gamblers in China.