Genting quarterly profit slides 53% with lower gaming revenue
Genting, the Malaysian company that is seeking to build a mega-resort and casino in downtown Miami, said third-quarter profit fell 53 percent as gaming revenue and palm oil prices declined.
The company, which controls casino operators in Southeast Asia, the U.S. and the U.K., said net income dropped to $92 million in the three months ended Sept. 30. Revenue declined 14 percent to 4.2 billion ringgit.
The company posted its third consecutive quarterly decline in profit after its Singapore unit, which runs one of the island-state's two gaming resorts, posted a 47 percent slump in net income. Genting Singapore plans to open new attractions, including Marine Life Park, on Dec. 7 at its Resorts World Sentosa casino resort in the city-state to boost sales.
"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," Genting said in its exchange filing.
Genting Singapore, which opened its casino resort in the city-state at the start of 2010, reported gaming revenue dropped 20 percent in the third quarter ended Sept. 30 as slower economic growth and tighter rules curbed spending by gamblers.
Genting last year got 40 percent of its total revenue from Singapore, another 40 percent from Malaysia, the U.S. contributed 10 percent and the U.K. accounted for 6 percent, according to data compiled by Bloomberg.
The group said it lost money in the U.K during the quarter, while profit from its gaming business in Malaysia rose 2 percent.