Earlier today, Genting Hong Kong Ltd., a popular casino cruise ships operator, released a warning note saying that its profits might have dropped by about 51% for the last fiscal year ended December 31, 2014.
As already mentioned, Genting Hong Kong operates cruise ships under the brand Star Cruises. The company is also a partner in two Philippine-based hotel and casino resorts.
Despite the gloomy prognosis, the company pointed out that the issued warning did not include information about the contribution from its associate business enterprises Travellers International Hotel Group, Inc. and Norwegian Cruise Line Holdings Ltd. (NCLH).
Travellers International Hotel Group, Inc. is known to be working in collaboration with Alliance Global Group, Inc., a Philippine-based real estate developer. The two companies developed and currently operate Resorts World Manila, the first integrated resort in the capital of the Philippines. Furthermore, their US$1.1-billion project Bayshore City Resorts World, yet another resort in the so-called Entertainment City, is under construction.
According to a statement from Travellers International, released on October 1, 2014, the multimillion complex broke ground in the fall of 2014 and is planned to open doors for visitors sometime in the fourth quarter of 2018. Bayshore City Resorts World is expected to feature more than 1,500 hotel rooms operated by several top-class international brands, as well as luxurious restaurants, cinemas, and other entertainment facilities.
Genting Hong Kong pointed out that it expects to report a 2014 profit of at least US$235 million. This figure, however, does not include the contribution from its associates NCLH and Travellers International. By comparison, the casino operator generated the amount of US$483 million for the twelve-month period ended December 31, 2013, excluding the above-mentioned companies’ contribution.
Genting Hong Kong attributed the likely decline in profits to several factors. The most significant of them was the fact that the disposal of NCLH stakes led to a certain reduction in gain. They totaled US$452 back in 2013. In 2014, however, they were reduced to about US$153 million, according to a previous report from the company.
The gambling operator also stated that it expects its earnings before interest, taxation, depreciation and amortization (EBITDA) for the past year to remain stable as compared to those posted in 2013.
Genting Hong Kong announced in its note that the audited report on its financial performance during 2014 will be released in March.
