Genting Malaysia Investors Get Decent Return

Investors in Genting Malaysia BHD will see a decent return for their investment, despite the profit drop in 2017. Genting Malaysia disclosed their fourth-quarter earnings to Bursa Malaysia. The announcement included a drop in the fourth quarter profit, which was over 74 percent. The number ended at $114.47 million, which was a significant loss compared to 2016. In 2016, the fourth quarter earnings were recorded at $430 million.

The company stated the earnings was lower in 2017 due to the impairment losses the casino operator faced in the fourth quarter. The adjusted earnings before taxation, interest, depreciation, and amortization for the UK and Egypt operations shows a significant climb in profit that is one hundred percent. The earnings were $16.25 million in the fourth quarter.

Resort World Casinos New York City had lower revenues. The adjusted gross for the US and Bahamas was down 56 percent, with some earnings of only $9.7 million in the fourth quarter.

Genting Malaysia said Resorts World Bimini, located in the Bahamas, had lower operating costs and thus cost rationalization occurred.

For 2017, Genting Malaysia reports a downhill slide in profit of 59.7 percent, which is some earnings of $295.49 million for the entire year. In 2016, the casino operator made over $733 million.

Exploring Genting Malaysia Generosity

Genting Malaysia was generous with regard to the single tier dividend, which was $0.02 per ordinary share and another $0.01 on top of that for the final dividend.

Genting Malaysia’s parent company, Genting BHD, said the profit plunge of over 75 percent in the fourth quarter may seem high, but the overall year loss showed a drop of only 27.6 percent. The income reported was $825 million.

The parent company says the drop in profit is due to investments in life science, which they are in the process of ending. Genting also examined the one-off gain from getting rid of Genting Hong Kong shares the year before.

Genting Malaysia feels the higher dividends are a way to offset the losses the company saw, which is why the final dividend of $0.02 for twelve months was provided on December 31, 2017.

Shareholders have a reason to enjoy the final dividend of the year, which amounted to $0.05 per share. Some stocks do not offer dividends at all when they have losses, so the increase in dividends per share is a worthy reason to continue investing in Genting if the company can show a better year for 2018.

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