Genting Malaysia’s profits suffered in the first quarter of 2019. The gambling operators profits slipped over 25 percent year-on-year; however, the company did manage to increase its gaming revenues.
The drop in Genting’s profits is attributed to excessive expenditure for certain operations. The company generated a profit of $64 million in the first three months. In the previous year for the same period, it had grossed $85 million in profits.
Genting posted $653 million quarterly revenue which is up from $572.5 million it had generated for the same period the previous year. In its earnings report the company has posted that their “their expenses” jumped 83% to $121.98 million year-on-year.
Explaining the sinking profits and increased expenses the company stated that the figures were “impacted by a provision for contract termination related costs of MYR198.3 million [$47.3 million] in relation to the outdoor theme park at Resorts World Genting.”
Genting also said in their report that, “The expansion of the global economy is expected to moderate amid slower growth momentum in certain major economies and emerging markets, as the increasing prevalence of geopolitical and policy uncertainties continue to pose downside risk. In Malaysia, economic growth is expected to continue at a slower pace in view of the subdued sentiments surrounding the global and domestic environment.”
“Meanwhile, the regional gaming market is expected to be increasingly challenging amidst the uncertain economic backdrop, as evidenced by the recent performance of certain gaming operators in Macau and Singapore. The Group remains cautious on the opportunities and growth potential of the leisure and hospitality industry.”