Nov. 27 (Bloomberg) — Genting Bhd., Asia’s largest listed casino operator, posted a quarterly loss of 40.4 million ringgit ($11.2 million) compared with a profit of 275.2 million ringgit a year ago, after taking charges related to its Chinese power plants and casinos in the U.K.
Net loss for the three months ended September was 1.09 sen per share compared with earnings per share of 7.45 sen a year earlier, the company said in a statement today. Revenue grew 7 percent to 2.37 billion ringgit.
Genting, which gets two-thirds of its sales from hotels, gambling and theme parks, has invested in businesses that include power generation and palm oil to manage swings in casino revenue. The Kuala Lumpur-based company expects the rest of the year to be “challenging.”
“The group’s prospects for the remaining period of this year will be challenging, in view of the global economic slowdown and lower commodity prices anticipated,” Genting said. “The slowdown in the local economy could impact consumer sentiments and may affect visitations to Genting Highlands Resort. In the U.K., the general economic outlook is expected to be poor.”
Pretax profit at the plantations unit, its second-biggest earner, fell to 130.8 million ringgit from 131.3 million ringgit. Profit at its power division plunged 96 percent to 5.5 million ringgit.
Genting shares have fallen 44 percent this year, more than the 40 percent decline in the Kuala Lumpur Composite Index. The stock dropped 1.8 percent to 4.44 ringgit at today’s close.
Genting’s assets include Kuala Lumpur-listed Resorts World Bhd., operator of a Malaysian casino, and Singapore-listed Genting International Plc, owner of a license to build the city- state’s second gaming resort.
