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Genting Hong Kong issues profit alert

Genting Hong Kong issues profit alert

Genting Hong Kong said it expects a record profit of at least US$2bn for 2015, excluding the results of Travellers International Hotel Group. That compares to a profit of US$331.7m in 2014, excluding the share of results of Travellers.

In a notice to the Hong Kong Stock Exchange, Genting HK cited previously disclosed factors including a total gain of approximately $658.6m from sales of Norwegian Cruise Line Holdings shares. Also, there was a one-off accounting gain of nearly $1.6bn on completion of a secondary offering of NCLH shares when the company stopped accounting for its share of results and net assets of NCLH as an 'associate' and, instead, as an 'available-for-sale investment.'

In addition, Genting HK had a one-off gain of $124m in November 2014 from the disposal of a stake in NCLH which issued certain new shares for its acquisition of Prestige Cruises. There was an increased foreign exchange loss of approximately $24.5m due to depreciation of foreign currency-denominated bank balances against the US dollar.

As well, despite an overall improvement in the performance of the group’s cruise business and contribution from Crystal Cruises, Genting HK expects a deterioration of operating results in 2015 compared to 2014 due to challenging market conditions. In particular, there was continued weakness in the regional gaming industry that resulted in a softer overall gaming performance. In line with industry, management increased the provision of doubtful debts.

Genting HK provided the profit alert based on preliminary results that don't take its share of the results of Travellers into account since that is a publicly listed company on an overseas stock exchange.

The Genting group's audited consolidated results for 2015 are expected to be announced in March.

 

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