Friday, February 19, 2010

Genting Singapore FY09 net loss S$277.56m for FY09

KUALA LUMPUR: Genting Singapore plc posted net losses of S$277.56 million in the financial year ended Dec 31, 2009 versus S$124.80 million a year ago due to losses in derivative financial instruments, higher pre-operating expenses and lower contribution from the UK casino operations.

It told the Singapore Exchange on Friday, Feb 19 that consolidated revenue was S$491.2 million in FY09 compared to S$630.7 million in 2008. The reduction is mainly due to a decrease of S$141.8 million in revenue from the group’s UK casino operations.

It added revenue from the UK casino operations were depressed by lower business volume and lower win due to poor luck factor as compared to previous year. The reduction was further exacerbated by the weakening of the sterling pound against the Singapore dollar.

Group loss before taxation increased from S$148.5 million in the previous financial year to S$265.7 million in the current financial year.

The factors were:

a) Fair value loss on derivative financial instruments in the current financial year of S$108.3 million arising mainly from the valuation of the conversion option embedded in the group’s convertible bonds as compared to a fair value gain of S$37.2 million recognised in 2008;

b) Increase in pre-operating expenses incurred for the integrated resort in Singapore of S$103.4 million. The higher pre-operating costs is mainly in relation to staff costs incurred as the integrated resort begins to accelerate its recruitment, training, sales and marketing programs prior to its launch;

c) Lower interest income of S$3.8 million for the current financial year compared against S$13.2 million in 2008;

d) Share of losses from jointly controlled entities of S$8.9 million;

e) The estimated one-third share of after tax profits of the international betting division, which was disposed by the Group in 2007. The group had on March 22, 2007 completed the disposal of its 50% interest in international betting operations for a cash consideration of S$3.3 million (£1.0 million).

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