Genting casino profits tumble

 

Genting Bhd reported a 22 percent decline in pre-tax profits to M$1.22 billion ($398 million) in the first quarter from a year earlier for its leisure and hospitality business, led by its casinos. Revenues for the business slipped 7 percent to M$3.5 billion.

Pre-tax profits from its US business, centered on its huge slot parlor in New York City, soared to M$80.8 million from M$1.3 milllion on just 4 percent growth in revenue but the earnings boost was inflated by a one-off charge a year earlier. However, profits from the company’s Genting Highlands casino resort in Malaysia declined 19 percent while earnings from UK casinos dropped 30 percent, nearly matching the 32 percent drop at Genting’s Singapore casino resort. The company said Malaysian results fell due to higher promotional expenses and social responsibility contributions while the UK business was hurt by lower volumes in London and a lower hold percentage.