Malaysia's Genting posts lowest quarterly earnings in 6-1/2 years

[KUALA LUMPUR] Genting Bhd, a Malaysian-based gaming-to-plantations conglomerate, on Wednesday posted a sharp drop in quarterly net profit to its lowest level in 6-1/2 years.

The group, controlled by Lim Kok Thay, Malaysia's fourth richest man according to Forbes, said net profit for the April-June period slumped 81.7 per cent to 67.9 million ringgit (S$22.5 million) from 372.1 million the same quarter a year ago.

The outcome, its weakest result since December 2008 when it made a quarterly loss, partly reflected "fair value" adjustments on derivative instruments as well as other impairment charges, the company said.

Revenue dropped 5.5 per cent to 4.17 billion ringgit.

The results were announced after the Kuala Lumpur stock exchange closed with the stock down 1.48 per cent at 6.64 ringgit.

Genting shares have dropped 24 per cent year to date, mainly hurt by softer gaming and plantations businesses, underperforming a 11.2 per cent drop in the Kuala Lumpur benchmark index over that period.

REUTERS