Published February 27, 2009

Genting posts Q4 loss of RM120.8m

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(KUALA LUMPUR) Malaysian conglomerate Genting reported a RM120.8 million (S$50.4 million) net loss in the fourth-quarter, hit by an impairment loss at its cruise business.

It earned RM514.44 million in the year-ago period.

The company expects the global economic crisis to hit its casino businesses in Malaysia and the United Kingdom, as well as its power utility operations in China, it said in an earnings statement yesterday.

Full-year net profit more than halved to RM569.3 million from RM1.99 billion a year ago, much worse than the RM1.351 billion market consensus compiled by Reuters Estimates.

A deepening economic crisis in Asia and Europe will hit Genting hard.

The company owns Genting Highlands, the sole casino resort in mainly Muslim Malaysia where the economy is heading for its steepest downturn in eight years.

Stanley Leisure, Britain's largest casino operator, which the Malaysian company controls, will have a tough time too with the UK economy now engulfed by the worst recession that has not been seen in decades.

Genting is going to launch a new casino resort in neighbouring Singapore in 2010.

Genting's power utility operations in China and oil palm plantations in Malaysia and Indonesia are expected see sharp slow down in business too due to weakening demand from factories and consumers.

Genting shares slid 29.52 per cent during the October to December quarter, underperforming the benchmark share index's loss of 13.93 per cent.

The stock ended down 1.67 per cent to RM3.54 before the release of the results. -- Reuters