BUENOS AIRES: Japan will put issues ranging from global trade imbalances to the impact of ageing populations on the agenda when it chairs next year’s meetings of leaders from the Group of 20 (G20) major economies, government officials said. At the end of the G20 summit in Buenos Aires, Finance Minister Taro Aso unveiled the […]
PETALING JAYA: Genting Malaysia Bhd swung into a net loss of RM1.49 billion for the third quarter ended Sept 30, 2018, on a RM1.83 billion impairment loss on the group’s investment in the promissory notes issued by the Mashpee Wampanoag Tribe (Tribe).
The impairment loss was due to the uncertainty of recovery in the group’s investment following the US Federal Government’s decision concluding that the Tribe did not satisfy the conditions under the Indian Reorganisation Act that allows the Tribe to have the land in trust for an integrated gaming resort development.
However, the group continues to work closely with the Tribe on options that include a legislation being introduced in US Congress which, if passed, will entail the US Federal Government to reaffirm the land in trust for the benefit of the Tribe.
The impairment loss can be reversed when the promissory notes are assessed to be recoverable.
For the corresponding quarter in the preceding year, the group made a net profit of RM193.77 million.
Revenue was up 14.51% to RM2.6 billion, compared with RM 2.27 billion with higher volume of business in the mass market segment following the opening of new facilities and attractions under the Genting Integrated Tourism Plan, which have been well received.
In a separate statement, the group said it is cautious on the opportunities and growth potential of the leisure and hospitality industry amid the uncertain consumer spending environment.
In Malaysia, the announcement of a revision in casino duties and casino license fees in Budget 2019 will impact the group’s earnings next year.
The group is reviewing its marketing strategies and will streamline its operations and cost structure to mitigate the impact of the tax increases.
In the meantime, the group remains focused on the progressive roll out of the new Skytropolis Funland indoor theme park this year.
In the UK, the group said it is committed to improving overall business efficiency and growing its market share in this segment.
While in the US, the group will continue intensifying its direct marketing efforts to increase visitation and frequency of play at the property.
Genting Malaysia’s performance in the third quarter pushed the group into net losses for the cumulative nine-month period ended Sept 30, 2018 of RM739.73 million, compared with a net profit of RM711.51 million for the corresponding period in the preceding year.
Revenue for the period was 9.35% higher at RM7.42 billion, compared with RM679 billion.
BERLIN, Nov 30 — German chemical and pharmaceutical giant Bayer said yesterday it would slash 12,000 jobs in a major restructuring following the mammoth takeover of Monsanto, enabling it to save €2.6 billion (RM12.34 billion) a year from 2022….
SINGAPORE, Nov 29 — Murphy Oil Corporation is in talks to sell its Malaysian oil and gas assets after an unsolicited bid that could fetch between Us$2 billion and US$3 billion (RM8.38-12.57 billion), people familiar with the matter said, in the…
WASHINGTON, Nov 29 — The US economy slowed in the third quarter as previously reported, but the pace was likely strong enough to keep growth on track to hit the Trump administration's 3 per cent target this year, even as momentum appears to have…
KUALA LUMPUR, Nov 27 — The Malaysian Business Angel Network (MBAN) expects angel investment in the country to double in the next two years from US$10 million (US$1=RM4.19) invested in 2017-2018. President Dr Sivapalan Vivekarajah said Malaysia had…
PETALING JAYA: The proposed airport departure levy announced in Budget 2019 will have a negative impact on the local aviation industry, said RHB Research analyst Stephanie Cheah.
“What is unclear now is who will bear the brunt of the negative impact, be it Malaysia Airports Holdings Bhd (MAHB) or the airlines. On one end of the spectrum, if airlines decide to absorb the cost and lower airfares, this will translate negatively to airlines’ yields and profitability,” she said in her report last Friday.
Cheah said if airlines decide to maintain fares, they may still be hit in terms of load factor while MAHB will see its passenger volume growth decline.
According to her, the airlines are likely to absorb a portion of the departure levy, balancing between the impact on yields and load factors while the airport operator will be negatively affected by lower passenger volumes but to a less extent.
The departure levy, which comes into effect on June 1, is set at RM20 per passenger for Asean destinations and RM40 for others.
Meanwhile, Cheah said the establishment of an airport real estate investment trust (REIT) will reduce the capital expenditure burden on MAHB. “But at the same time it could also compete with MAHB in terms of financing choices for its projects, which could limit MAHB’s growth potential under the Regulated Asset Base (RAB) framework.”
Cheah said the higher cost of funding from the REIT giving rise to higher user fee is not a major red flag for MAHB as the cost will be accounted for in determining the necessary aeronautical tariffs to recoup its fair return under the RAB framework.
“However, the same cannot be said for the airlines, which will be impacted by resulting higher aeronautical tariffs.”
Last Thursday, the Malaysian Aviation Commission said in a commentary that the two proposals, if not designed carefully, could materially constrain the development of the RAB framework and the renegotiation of the operating agreement between the government and MAHB.
The key issues highlighted in relation to the proposed REIT include the complexity of land ownership of the land on which the airports are located and the possible risk of airport charges being subjected to artificial upward pressure by the REIT’s yield requirements. It also said the government risks contravening the International Civil Aviation Organisation guidelines and international good practices with the proposed departure levy, if the proceeds are not ploughed back into the industry and a similar tax is not imposed on other modes of transport.
KUCHING: The state once again honours the best it has to offer via the Sarawak State Entrepreneur of the Year Awards (EOYS) 2018 and Sarawak State Outstanding Entrepreneurship Award 2018 presented at the Sarawak Chamber of Commerce & Industry’s (SCCI) 67th Annual Dinner on Friday at the Imperial Hotel, Kuching. Organised by the Ministry of […]
PETALING JAYA: Tadmax Resources Bhd reported a net profit of RM4.45 million for the third quarter ended Sept 30, 2018 compared with a net loss of RM19.82 million a year ago, driven by the property business segment.
In a filing with Bursa Malaysia, the group said its property business reported a pre-tax profit of RM8.43 million during the quarter. It was the only segment that reported a profit during the quarter.
Revenue for the quarter rose 79.20% to RM46.17 million from RM25.76 million a year ago, due mainly to contribution from the property business segment, which in turn was attributed to the higher percentage completion achieved by its Mizumi Residences project in Kepong.
For the nine-month period, the group's net profit plunged 90.34% to RM2.66 million from RM27.56 million a year ago while revenue jumped 86.36% to RM120.22 million from RM64.51 million.
Moving forward, Tadmax said the final quarter of the financial year ending Dec 31, 2018 will see contribution from the continued progress and performance of Mizumi Residences, which has already been 80% taken up.
However, the group said the energy business will not contribute to its near-term profitability as it would take about four years before commercial operation begins. Submission of the final technical and commercial proposal was made to the Energy Commission on July 31, 2018.
Recall that the company had entered into a heads of agreement on Sept 14, 2018 with Selangor government-linked Worldwide Holdings Bhd and Korea Electric Power Corp, which is expected to augur well for the group's power plant project in Pulau Indah.
As for the industrial supplies business, the group said the anticipated reduced activity in the construction market will be a challenge for the segment's revenue growth potential for the rest of 2018 and next year.
ROME, Nov 15 — Italy's populist government yesterday defiantly stuck to its refusal to revise big-spending budget plans for Brussels despite warnings from financial market investors and the International Monetary Fund. “The budgets Brussels has…