It was to be expected. Malaysian conglomerate Genting reported lower second quarterly earnings for 2009 as the economic crisis hit its casinos and palm plantation businesses.Genting is mildly expectant that its casino takings may improve given improved prospects for the economy.
"With the forecast turnaround in the global economic outlook, Genting Malaysia Group is cautiously optimistic (concerning) its prospects," it said in a statement.
However, its casinos in the United Kingdom is expected to remain weak due to the still gloomy economic outlook there, it said.
Second-quarter net profit fell 26 per cent from a year ago to 214.49 million ringgit ($60.86 million).
"The Genting Highlands Resort experienced weaker luck ... in the premium players business" though volumes rose, added Genting.
In the UK, higher revenue was offset by a weakening of the pound against the ringgit.
Analysts in Malaysia do not provide quarterly earnings forecasts, but 20 analysts polled by earnings tracker IBES ahead of the results projected Genting's full-year net profit at 1.02 billion ringgit.
In June, Genting bought a 3.2 per cent stake in MGM Mirage, the biggest casino operator on the Las Vegas Strip, sparking market talk Genting could buy out MGM's stake in its Macau's business.
Its unit Genting Singapore is building Singapore's second integrated casino resort and is also the largest casino operator in the United Kingdom.
Genting also has interests in oil palm plantations, power generation and property development. Its associate Star Cruises is Asia's largest cruise operator.
Genting shares have gained 78 per cent so far this year, outpacing the wider market's 34 per cent gain. They traded up 1.1 per cent ahead of the results announcement.
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