Unlucky bet: Genting's profit plunges by 27% in Q2

A $81.6m impairment dented its bottomline.

Hospitality giant Genting reported a 27% profit plunge for the second quarter of the year, on the back of a massive S$81.6m impairment on its trade receivables.

Genting reported a net profit of $102.3m, though management reports that the change is likely to be one-off.

According to a report by OCBC, Genting’s strong performance in 1Q14 caused its net profit to climb 29% for the first half, meeting 53% of OCBC’s full year forecast.

“Nevertheless, management remains mostly cautious for the rest of the year, noting that the persisting uncertainties in the global economic environment and geopolitical conflicts are likely to still weigh on the economic outlook, especially in its key markets like China, which will have some impact on its VIP as well as mass gaming segment. However, it revealed that the quality of its visitors has improved, despite a drop in number,” noted the report.

Here’s more from OCBC:

Separately, management updated that its IR in Jeju has received strong support from the South Korean government; although we understand that the construction is only likely to start in 1Q15, versus Jul 14 as previously guided.

As for Japan, GS believes that there is growing support for IRs in Japan and expects the parliament to pass the bill.