Asian casino operator Genting Hong Kong Limited has seen its annual profit for 2016 tumble from the $2.1 million it recorded for the previous twelve-month period to a deficit of just over $504,000 despite recording a 39.1% gain year-on-year in cruise ship activities.
Genting Hong Kong is responsible through its Travellers International Hotel Group Incorporated associate for the Resorts World Manila development in the Philippines and revealed that 2016 saw its overall annual revenues rise by over 43% year-on-year to $1.01 billion although operating expenses also increased by nearly 58% to $972.1 million.
The Hong Kong-based firm is additionally the parent of the Star Cruises, Dream Cruises and Crystal Cruises brands as well as the Lloyd Werft Group shipyard and nightlife brand Zouk and it explained that annual cruise and cruise-related revenues hit $908.1 million while takings from non-cruise activities swelled by 192.5% to $108.6 million primarily due to the acquisition of shipyards in Germany.
In terms of its Travellers International Hotel Group Incorporated associate, the Hong Kong-listed firm declared that total 2016 revenues dropped by 5.2% year-on-year to $577.6 million while earnings before interest, tax, depreciation and amortization fell by 0.5% to $135.6 million. Higher casino operating expenses moreover led to direct costs for the twelve-month period hitting $223 million while general and administrative expenditures fell by almost 1% to $203.8 million.
“The increase was due to full-year depreciation for the Marriott Grand Ballroom, which was capitalized in December of 2015, an increase in general marketing as a result of the change in arrangement with junket operators from revenue sharing last year to the traditional rolling-based commission and the settlement of the tax assessment from prior years,” read a statement from Genting Hong Kong.
In addition, Genting Hong Kong proclaimed that Travellers International Hotel Group Incorporated recorded finance costs for 2016 of $30.7 million, which was an increase of 80.5% year-on-year primarily due to the depreciation of the Philippine peso leading to unrealized foreign exchange losses on a $300 million bond.
It detailed that all of this left Travellers International Hotel Group Incorporated with a net profit for 2016 of $71.4 million, which was a decline of 19.2% year-on-year, although its cash and equivalents rose by just over 2% to $267.7 million.