Genting HK swings to loss in 16H1

Casino cruise ship operator Genting Hong Kong said profits swung to a loss in the six months ended June 30, 2016, attributed to a rise in total operating expenses.

In a filing to the Hong Kong Stock Exchange on Tuesday, loss attributed to owners was $53.6 million 16H1, compared to a profit of $2.2 billion in 15H1.

Total operating expenses increased 73.1 percent to $344.7 million in 16H1, “due to additional operating expenses mainly contributed by Crystal Cruises and recently acquired businesses.”

Revenue from cruise activities increased 44.8 percent to $384 million in the period, up from $265.1 million in 15H1, while net revenue rose 41.2 percent to $307.8 million.

“The increase in both Capacity Days and Net Yield was primarily due to the inclusion of full six months’ contribution of Crystal Cruises in 16H1, as compared with its post-acquisition contribution since 15 May 2015 in 15H1,” said the operator.

Last week, Genting HK reported that Philippines-listed Travellers International Hotel Group Inc saw a drop in net profit for the six months ended June 30.

Travellers reported net profit of P1.8 billion ($38.6 million) in 16H1, down from P2.4 billion in 15H1.

Genting HK operates through a joint venture with Travellers for Resorts World Manila. In a statement, the company said the second quarter improvement was mainly due to an increase in gross gaming revenues and decrease in promotional allowance.

In July, the company announced it had completed its investment of the proceeds of its initial public offering, which has financed the phase two and three expansion of Resorts World Manila.

According to a filing to the Philippine Stock Exchange, the company said it had allocated approximately P7 billion ($149.7 million) as of June 30, 2016 to the phase two expansion program.

In its interim financial results filing, Genting confirmed the new Marriott West Wing will be in operation by September 2016, while ongoing developments will see the introduction of three new hotels – Hilton Manila Hotel, Sheraton Hotel Manila, and a new Maxims hotel – which are expected to be completed by the end of 2017.