Singapore: Genting Narrows Net Loss To $125m

SINGAPORE: Genting International said Thursday (19 Feb) its full-year net loss narrowed to $124.8 million from $381.4 million, but warned that it will be incurring substantial costs for the Resorts World at Sentosa (RWS) development.
It also said the development is expected to have a 'significant impact' on earnings this financial year.
The group assured investors yesterday that financing for the integrated resort (IR) 'is in place' after it obtained a $4 billion credit facility last April.

Genting, which is also the largest casino operator in Britain, saw its revenue fall 14% to $643.8 million.

The company took a hit from its casino operations in Britain, where a slowing economy and a weakening pound against the Singapore dollar took their toll.

The group also experienced lower business volumes due to the global economic slowdown.

The slowdown is likely to have a material impact on disposable income, which will adversely affect its British operations, it said.

The group absorbed $100.8 million in impairment losses on intangible assets, mainly due to the general economic slowdown in Britain and the rest of the world.

Key expenses were also up, with administrative expenses rising 22% to $42.5 million.

Other operating expenses more than doubled from $15.2 million to $32.7 million.

Loss per share was 1.3 cents, down from 5.08 cents, while net asset value stood at 28.41 cents as of 31 Dec, down from 35.29 cents a year earlier.

Genting shares closed at 42.5 cents Thursday ahead of the earnings announcement, down half a cent. It has lost about 34% since a high of 64.5 cents last June.

No dividend was recommended for the year.

Source