Genting HK reports record 1H profit, helped by acquisition, asset sales

Genting Hong Kong reported record interim profit, boosted by a stake sale and accounting changes, as well as higher revenue.

Profit attributable to owners of the company was $2.16 billion in 1H2015, compared with $216.7 million in the year ago period. The group’s EBITDA for 1H2015 was $29.6 million compared with $20.2 million in 1H2014.

The company, which completed the acquisition of luxury cruise line Crystal Cruises in May this year, posted a gain of $599.6 million from the sale of shares in Norwegian Cruise Line Holdings in March and May. It also had a one-off accounting gain of $1.56 billion as a result of the reclassification of NCLH from an “associate” to an “available for sale investment.”

Revenue from cruise and cruise-related activities increased 2.5 percent to $265.1 million in 1H2015 compared with US$258.8 million in 1H2014.

Net revenue in 1H2015 increased 6.4 percent to $218.0 million due to an increase in capacity days of 6.3 percent, helped by the addition of Crystal Cruises.  

Genting said its net yield was stable due to higher passenger ticket revenue as a result of the acquisition of Crystal Cruises, offset by lower onboard revenue attributable to lower gaming revenue.

Revenue from non-cruise activities decreased 56.2 percent to $10.0 million in 1H2015, due to lower income from aviation, travel agent and the international marketing activities in relation to its Manila operations.

Going forward, Genting said it has two new cruise ships on order with Meyer Werft GmbH, Papenburg, Germany for delivery scheduled in the fourth quarter of 2016 and 2017. Each of the ships is 151,000 gross tons and has 3,300 lower berths, giving a superior passenger space ratio of about 46 tons per lower berth in Asia.

Also in 2016-2018, Crystal Cruises is planning to expand into fast-growing ocean yachts and river cruises by leveraging its luxury client database.

The company’s Travellers International venture, which operates Resorts World Manila, will continue to expand the property by developing new hotels with gaming and non-gaming attractions.

Travellers will increase its hotel capacity from 1,226 rooms to approximately 4,200 rooms in the next four years, with the on-going construction of extensions to the Marriott and Maxims Hotels, and the development of new hotels including Hilton Manila Hotel and Sheraton Hotel Manila.