Genting Profits Drop 53% To $92m In Q3

Malaysian company Genting Bhd has released its latest quarterly results ending September 30th, revealing a huge 53% fall in its net income to RM279.4 million (US$92m) from RM597.2 ($196m) for the same period last year. Meanwhile, the company also saw its revenue tumble by 14% to RM4.2 billion ($1.38bn).
Genting’s results represents three consecutive quarterly declines in profit for the company which operates casinos in Southeast Asia, the U.S. and the U.K. Worryingly, its Singapore business saw its net income plummet by 47%, while gaming revenue was also down by 20% in Q3. However, Genting Singapore said it would soon be adding  new attractions to its Resorts World Sentosa casino, including a marine park, with a company statement explaining:
“The full opening of Resorts World Sentosa will allow the company to capitalize on sales and marketing initiatives that appeal to a wider base of affluent travelers and new markets.”
In 2011, Genting’s total revenue from Singapore and Malaysia was 40% each, with the U.S and U.K. contributing a further 10% and 6% respectively. On Thursday, Genting Malaysia Bhd also reported a 45% decline in its profits to RM190.35 million ($62.43m) from RM347.15 million ($113.85m) for the same quarter last year. In addition, total revenue was down 16% to RM1.94 billion ($0.64bn) from RM6.16 billion ($2.02bn) last year.
Following news of its latest quarterly results, Shares in Genting climbed 2%, while Genting Malaysia Bhd. shares fell 2.3% and Genting Singapore rose by 2.4%. Commenting on the situation, RHB Capital Bhd analyst Hoe Lee Leng, said:  “Genting’s dependency on the volatile Singapore market, which is currently facing some headwinds with the ever-changing government regulations, would be an obstacle to its share price performance in the medium term.”