Malaysia’s Genting Berhad posted a decrease in net income of 23.6% in the third quarter, due mainly to weaker results from its majority-owned Resorts World Sentosa casino in Singapore.
The Kuala Lumpur-listed holding company (MYX:3182), the principal investment vehicle of the Genting Group, whose diverse portfolio includes stakes in casinos in Malaysia, the UK, the US, the Philippines, the Caribbean and cruise-ship gaming in Asia and North America, said profit fell 352.7 million ringgit (US$105.2 million) in the July-September period from 462 million ringgit in the same period last year.
A year-long fall-off in VIP play at Sentosa, which Genting owns through a majority stake in SGX-listed Genting Singapore, was the culprit, the company said.
Genting Singapore (GENS SP) reported a 43% drop in net income in the third quarter as high rollers from China have cut back on visits as a result of a broad government crackdown on corruption in China and slowing economic growth in the country. Around half of Sentosa’s VIP play comes from China.
The company’s MYX-listed Genting Malaysia subsidiary (4715) reported a 17.5% drop in net income for the quarter on a 5% increase in combined revenues of 2.2 billion ringgit ($659 million) from its Genting Highlands resort complex north of Kuala Lumpur and its UK, US and Caribbean casinos.
Genting’s non-gaming business, comprised of a separate MYX-listed company with holdings in power generation, natural resources, commercial agriculture and property development, posted a 91% jump in profit in the third quarter.
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