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Genting Hong Kong issues profit warning for H1
GENTING Hong Kong Limited announced it is expected to record a net loss of US$60 million to US$75 million for the six months ended June 30, 2016. This loss is compared with a consolidated net profit of US$2.1 billion for the six months ended June 30, 2015.
The expected loss is mainly attributable to the absence of a one-off accounting gain of US$1.57 billion arising from the reclassification of the group's investment in Norwegian Cruise Line Holdings Ltd (NCLH) from "interest in associates" to "available-for-sale investments" in May 2015, and a total gain of US$599.6 million arising from the disposal of certain stakes in NCLH in the six months ended June 30, 2015.
Another reason is the one-time startup and marketing costs for the launch of new Dream and Crystal cruise brands and products in 2016.
The expected loss is also due to the higher overall operating and selling, general and administrative expenses including depreciation and amortisation as a direct result of the integration of the group's recently acquired businesses.
The unaudited consolidated results of the group for the six months ended June 30, 2016 are expected to be announced in August.