Genting International slips into red with RM872m loss

KUALA LUMPUR: Singapore-listed Genting International plc, a subsidiary of Genting Bhd, plunged into the red for the year ended Dec 31, 2007 (FY07), with a net loss of S$381.5 million (RM872.4 million), compared with a net profit of S$56.9 million in FY06, mainly due to S$454.6 million impairment loss on goodwill arising from the acquisition of UK gaming firm Stanley Leisure plc, now known as Genting Stanley plc.

This resulted in loss per share of 5.08 cents, compared with earnings per share of 0.92 cents previously, Genting International announced to the Singapore Stock Exchange on Sunday evening.

It did not recommend any dividend for FY07.

Genting International said the increase in the UK gaming duty bands and rates imposed by the UK government beginning April 2007 had a negative impact on the profit performance of the group.

It said the UK government’s move to implement a smoking ban in all public enclosed areas in England and Wales beginning July 2007 had also adversely affected the group’s gaming business.

“The impairment loss of S$454.6 million on the Leisure & Hospitality segment resulted in the segment realising a loss from operations of S$387.9 million for the year.

“The investment segment also suffered an impairment loss, arising from the expiry of an option to purchase land in the UK, of S$18.1 million as well as a fair value loss on financial assets at fair value through profit or loss of S$1.2 million.

“Both the impairment loss and fair value loss resulted in the investment segment recognising a loss from operations of S$14.2 million for the year,” it added.

However, the contribution from UK casinos had ballooned its FY07 revenue by 156% to S$749.4 million from S$292.9 million previously.

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