Resorts World reported Loss
Filed Under (Business News) by Webmaster on 26-02-2009
Tagged Under : loss, Resorts World
Resorts World Bhd (4715) posted a net loss of RM387.8mil for the fourth quarter ended Dec 31 from a net profit of RM344mil a year ago due to an impairment loss. Without the impairment loss, the company said its fourth quarter would have been profitable.
The group’s revenue for the quarter increased by 16.4% to RM1.32bil from RM1.14bil previously.
“The loss is due to the impairment of the group’s investment in Star Cruises Ltd (SCL) of RM781.5mil.
“This impairment loss, in which the cumulative fair value loss of the group’s investment in SCL previously recognised in reserves, has now been accounted for in the group’s income statement.
“Excluding this impairment loss, the group’s net profit would have increased by 14%, reflecting a better underlying performance of its leisure and hospitality business,” Resorts said in a statement yesterday.
For the financial year ended Dec 31, Resort posted a net profit of RM634.4mil, down 59.2% from RM1.55bil in 2007. Its revenue rose 12% to RM4.88bil from RM4.35bil in 2007. Earnings per share were lower at 11.06 sen compared with 27.42 sen.
“The increase (in revenue) is mainly due to the better underlying performance of the leisure and hospitality segment, arising from higher business volume and better luck factor from the premium player business,” Resorts said.
The group also proposed a final dividend of 4 sen per share. Together with an interim dividend of 3 sen, the total gross dividend for 2008 would amount to 7 sen, representing an 8% increase from 2007.
“Prospects in 2009 will be challenging as the worsening global economic situation will impact the leisure and hospitality industry,” Resorts said.
The group expects consumer sentiment to be affected by the slowdown in the local economy which may affect visitations to Genting Highlands Resort.
“The group will continue to closely monitor its business and take appropriate measures to address any slowdown in business activities,” it added. – The Star
