GENTING Bhd and its two listed subsidiaries – Resorts World Bhd and Asiatic Development Bhd (ABD) – have all turned in strong financial results for the six months ended June 30, with net profits more than doubling from a year ago.


Genting’s net profit of RM386.5mil for the half year was 165% higher than the RM145.7mil it posted for the previous corresponding period, although its turnover only increased by 13% to RM1.77bil.


Its pre-tax profit came in at RM783.2mil, compared with RM394.2mil a year before. Earnings per share (basic) rose to 54.90 sen from 20.70 sen previously.


For the second quarter to June 30, Genting achieved a pre-tax profit of RM421.7mil on a turnover of RM869.8mil, compared with a UFABet profit of RM233.9mil on revenue of RM752.3mil the year before. Net profit nearly tripled to RM207mil from RM76.8mil.


Genting attributed the better earnings to the improved underlying performance of its leisure & hospitality division as a result of an increase in visitor arrival following the full opening of the 3,300-room First World Hotel and the First World Plaza in December last year and March this year respectively.


A higher second quarter contribution of RM37.7mil from associate Star Cruises Ltd and firmer selling prices for palm products also helped enhance the group’s earnings.


Genting has declared an interim gross dividend of 7 sen per share of 50 sen each.


The leisure & hospitality division remained the main contributor to the group’s pre-tax profit. The division accounted for RM636mil of the group’s RM688.9mil profit before tax, minority interest and extraordinary items. Plantations and properties contributed RM7.5mil and RM3.3mil respectively. But the oil & gas division incurred a loss of RM4.2mil.


Resorts World, the holding company of the Genting group’s casino, posted a net profit of RM351.6mil for the half year ended June 30, 162% higher than the RM134.3mil net earnings it achieved in the previous corresponding period, on a higher turnover of RM1.42bil against RM1.23bil previously.


The casino operator’s pre-tax profit of RM498.4mil for the half year was almost double the RM251.8mil profit posted a year ago, while its earnings per share ballooned to 32.2 sen from 12.3 sen.


For the second quarter, the company posted a pre-tax profit of RM285.7mil compared with RM193.9mil a year ago, on a turnover of RM683.5mil versus RM599.9mil previously.


Its net profit for the quarter was RM211mil, up sharply from RM131.8mil previously, while earnings per share expanded to 19.40 sen from 12.10 sen.


Resorts World has declared a gross interim dividend of 8.5 sen per 50-sen share.


Analysts described the Genting and Resorts World financial figures as impressive. However, the results did not come as a surprise to many given that Star Cruises’ second quarter results had topped most expectations.


But some analysts also pointed out that Genting’s bottom line figures could have been better if not for the higher-than-expected deduction for minority interest of RM177.3mil compared with RM65.8mil a year ago.


The Genting group’s plantation arm ADB, meanwhile, posted a 131% jump in pre-tax profit to RM46.6mil for the half year under review from RM20.1mil a year ago, on sharply higher turnover of RM127mil compared with RM86mil previously.


The company’s net profit for the period more than doubled to RM37.7mil from RM16.4mil a year ago, and earnings per share rose to 5.10 sen from 2.21 sen.


For the second quarter to end-June, ADB’s pre-tax profit was RM24.8mil, up from RM9.7mil a year ago, while turnover was also higher at RM67.3mil compared with RM45.4mil previously.


Its net profit for the quarter nearly tripled to RM20mil from RM7.4mil in the previous corresponding period.


The board of ADB has declared an interim gross dividend of 1.63 sen per 50-sen share.