KUALA LUMPUR: Genting Bhd slipped into the red with a net loss of RM275.80 million in the third quarter ended Sept 30, 2018 (Q3 2018), compared with a net profit of RM190.04 million in the same period last year.
Revenue, however, rose to RM5.38 billion from RM5.04 billion previously, mainly contributed by the increased revenue in leisure and hospitality segment in Malaysia, plantation and property segments.
In a filing with Bursa Malaysia, Genting said revenue from Resorts World Genting (RWG) increased by 26 per cent year-on-year (y-o-y) in Q3 2018, the plantation division’s overall revenue rose due mainly to downstream manufacturing (63 per cent y-o-y), while revenue from the property division jumped by 40 per cent y-o-y.
Genting said the group’s loss before tax in Q3 2018 was RM268.6 million compared with profit before tax of RM818 million in Q3 2017.
The loss was due mainly to the impairment loss of RM1.83 billion on Genting Malaysia Bhd (GENM) group’s investment in the promissory notes issued by the Mashpee Wampanoag Tribe to finance the Tribe’s development of an integrated gaming resort in Taunton, United States.
Moving forward, Genting expected the announcement of a revision in casino duties and casino licence fee in the 2019 Budget would impact GENM’s earnings next year.
“The GENM Group is reviewing its marketing strategies and will streamline its operations and cost structure to mitigate the impact of the tax increases,” it said.
No interim dividend has been proposed for Q3 2018.
Meanwhile, in a separate filing, Genting announced that its Deputy Chairman and Non-Independent Executive Director Tun Mohammed Hanif Omar would retire on Dec 31, 2018.
It also said two Independent Non-Executive Directors, namely Tan Sri Dr Lin See Yan and Datuk Chin Kwai Yoong, would retire from the position at the conclusion of the next annual general meeting of the company in 2019, in accordance with the constitution of the company.
“They are not seeking for re-election,” it said.