Genting Malaysia doubles its investment in GITP

KUALA LUMPUR (Feb 24): Genting Malaysia Bhd (Genting Malaysia) is raising its investment to RM10.38 billion — more than double the initial sum of RM5 billion — in the massive Genting Integrated Tourism Plan (GITP), which aims to attract 30 million visitors by 2020.

In a statement, Genting Malaysia explained that the additional hefty investment is to expand the scale and to add new facilities, to offer an extensive and wide array of new entertainment options to visitors from across the region.

The capital investment under Phase 1 of the GITP will increase to RM8.11 billion from RM4 billion.

Under this phase, Genting Malaysia said Twentieth Century Fox World theme park will see a substantial increase in investment with more spectacular, thrilling and state-of-the-art rides.

“Total investment in Twentieth Century Fox World theme park is expected to exceed RM2 billion,” the statement said.

The group revealed that the indoor theme park will also undergo a major transformation, turning it into a unique themed entertainment attraction offering a total of 18 rides from the existing nine, providing new and enjoyable entertainment for both young and old alike.

Genting Malaysia is banking on GITP to strengthen its position as a major tourism hub regionally. The second phase involved the construction of additional luxury hotels, estimated at RM2 billion.

The 10-year master plan will see the development, expansion, enhancement and refurbishment of hotels, theme park and infrastructure at Resorts World Genting.

Genting Malaysia also announced its quarterly earnings figures yesterday. Its net profit rose 9.27% to RM338.59 million in 4QFY15, from RM309.84 million in 4QFY14, for the same reason.

The group’s revenue, however, went up 11.37% to RM2.29 billion, from RM2.06 billion in 4QFY14, mainly contributed by overall higher volume of business even though there was a lower hold percentage in the premium player business.

Genting Malaysia has declared a final single-tier dividend of 4.3 sen per share.

For the full year, Genting Malaysia’s net profit expanded 5.82% to RM1.26 billion, from RM1.19 billion in FY14. Its revenue also grew 2.02% to RM8.4 billion, from RM8.23 billion.

Meanwhile, its parent company Genting Bhd’s net profit rose 23.8% to RM338.95 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM273.84 million in 4QFY14, lifted by lower taxation and favourable exchange rate for its overseas operation.

Supported by slightly higher revenues in most segments (except property division), the diversified group’s quarterly revenue grew by 6.4% to RM4.92 billion, from RM4.62 billion in 4QFY14.

The group has declared a final single-tier dividend of 3.5 sen.

For FY15, its net profit, however, slipped 7.23% to RM1.39 billion from RM1.5 billion in FY14, while revenue was almost flat at RM18.1 billion, from RM18.2 billion in FY14.

This article first appeared in The Edge Financial Daily, on Feb 24, 2016. Subscribe to The Edge Financial Daily here.