Malaysian gaming company Genting Group announced its results for the second quarter of 2022, with both revenue and profit increasing, but lower than expected. After analysis, exchange rate factors became the main reason for its weak profit growth.
According to data, Genting Group's revenue in the second quarter increased by 13.7% year-on-year to about HK$42 billion, and it turned losses into profits, achieving a small profit of HK$800 million. In the first half of the year, the company's revenue also increased by 22% year-on-year.
However, as Genting Group has a large amount of US dollar debt, the appreciation of the US dollar caused a currency exchange loss of about HK$4.4 million, which led to a decrease in its earnings per share.
Genting Group's core net profit was expected to reach approximately HK$2 million, but due to exchange rate losses, the actual profit was lower than expected.
Genting Group announced an interim dividend even as profits grew slowly. Analysts predict it may pay a higher dividend in the second half of the year. In addition, the company is also believed to be able to obtain a New York casino license in 2024, so it is optimistic.
