Asian casino giant Genting Malaysia has blamed unfavorable foreign exchange transactions along with higher operating costs after its net profit for the three months to the end of June fell by 59.4% year-on-year to approximately $45.2 million.
The operator behind the hill-top Resorts World Genting casino resort near Kuala Lumpur, Genting Malaysia stated that its total second-quarter revenues rose by almost 2.7% year-on-year to reach $536.5 million although its adjusted earnings before interest, tax, depreciation and amortization declined some 19% to $125.3 million.
Also responsible for the Resorts World Casino New York City and Resorts World Bimini properties, Genting Malaysia declared that its overall sales costs for the three-month period had swelled by 13.4% year-on-year to $412.4 million while it moreover recorded impairment losses worth $8.6 million.
“During the quarter, the group’s overall adjusted earnings before interest, tax, depreciation and amortization was impacted by a foreign exchange translation loss on its United States dollars denominated assets,” read a Thursday statement from Kuala Lumpur-listed Genting Malaysia. “Excluding the effects of the foreign exchange, the group’s overall adjusted earnings before interest, tax, depreciation and amortization for the second quarter of 2017 would have declined by 7% from last year.”
Additionally, the largest casino operator in the United Kingdom with over 45 properties, Genting Malaysia revealed that second-quarter revenues from its home market had improved by 7% year-on-year to $339.6 million.
“This was mainly due to an overall higher volume of business, [which was] aided significantly by the opening of new attractions at SkyPlaza in March 2017,” read the statement from Genting Malaysia.
However, it explained that additional operating expenditures associated with the “ramping up” of new facilities under its “Genting Integrated Tourism Plan” along with higher costs linked to its “premium players business” had seen adjusted earnings before interest, tax, depreciation and amortization from its Malaysia-based enterprises deteriorate by 8% to $101.7 million.
Genting Malaysia proclaimed that second-quarter revenues from its Resorts World Casino New York City and Resorts World Bimini venues had increased by 9% year-on-year to reach $90.2 million while their aggregated adjusted earnings before interest, tax, depreciation and amortization almost doubled to $21.7 million.
By contrast, Genting Malaysia stated that its operations in the United Kingdom saw combined second-quarter revenues plummet by 18% year-on-year while their earnings before interest, tax, depreciation and amortization dropped by 57.1%. The company declared that this had been mainly due to an “overall lower volume of business” along with a “lower hold percentage from the premium segment” and “unfavorable foreign exchange movements”.