The affiliate of the Malaysia-based conglomerate Genting Bhd – Genting Hong Kong Ltd – has made an update of the profit warning it posted earlier in February. The company reduced the projected 2014 profit decline and forecast a maximum of 36.7% for the period.
The subsidiary of the group is currently a casino cruise ships operator that is run under the brand Star Cruises. Genting Hong Kong is also a joint venture partner involved in the management of two casino resorts located in the Philippines.
In addition, the branch has recently announced the establishment of a joint venture that is planned to operate an already existing casino for foreigners only, which is situated in at the South Korean Hyatt Regency Jeju hotel.
According to the statement of Genting Hong Kong, the expected annual profit is to amount to at least $330 million. In comparison, the projected result for the fiscal year that ended on December 31st 2014 is considerably lower than the net income generated over the previous year, which totalled approximately $521 million.
Genting Hong Kong also specifically explained that the profit generated by its joint venture which runs the Resorts World Manila casino resort – Travellers International Hotel Group Inc. – was not included in the expectations announces in its most recent update. The above-mentioned joint venture is also currently dealing with the activities related to the construction of the Bayshore City Resorts World that is located in Entertainment City in Manila, which is said to worth $1.1 billion.
In the first decade of the month, the Malaysian conglomerate’s subsidiary issued a profit warning, saying that its annual income could decline by about 51% year-on-year for full fiscal 2014.
According to the company, the profit decrease is to come as a result to a variety of factors, including a “reduction in gain arising from disposal of certain stakes in NCLH”. Genting Hong Kong shared an interim report in 2014, which pointed that the stakes in question were worth a total of $452 million in 2013. As the company explained, they fell to about $153 million last year.
The update that Genting Hong Kong made today comes after a report of Norwegian Cruise Line Holdings Ltd (NCLH) financial results was announced. NCLH is an associate company of Genting, which share in its profit for the entire 2014 is projected to amount about $95 million. This is a considerable increase from the share of $38 million the company held in NCLH in 2013.
In addition, another announcement could be made by Genting Hong Kong after the Travellers International’s financial results are disclosed. The audited annual consolidated results of the company for the year ended on December 31st are planned to be unveiled in March 2015.
