Genting Lost RM40million last quarter.

http://www.btimes.com.my/Current_News/BTIMES/articles/20081127191006/Article/index_html

GENTING Bhd, Asia's largest listed casino operator, posted a quarterly loss of RM40.4 million (US$11.2 million) compared with a profit of RM275.2 million a year ago, after taking charges related to its Chinese power plants and casinos in the UK.

Genting, which gets two-thirds of its sales from hotels, gambling and theme parks, has invested in businesses that include power generation and palm oil to manage swings in casino revenue. The Kuala Lumpur-based company expects the rest of the year to be “challenging.” “The group’s prospects for the remaining period of this year will be challenging, in view of the global economic slowdown and lower commodity prices anticipated,” Genting said.
“The slowdown in the local economy could impact consumer sentiments and may affect visitations to Genting Highlands Resort. "

"Pre-tax profit at the plantations unit, its second-biggest earner, fell to RM130.8 million from RM131.3 million.
Profit at its power division plunged 96 per cent to RM5.5 million." (previous year 137 million!!!)

Well... Genting... well done. Obviously, Lim Goh Tong's son has not been doing quite as well as his dad did.

Something important to look out for. Genting's outlook for 2009 is going to be EVEN WORSE than 2008. For the simple reason that pre-tax profit for plantations for Genting in 2009 is projected to be between RM20million loss and RM20 million profit, based on projected Crude Palm Oil prices.

How will it's power plants in China do?

Well... China is planning to build 12 Nuclear Power Plants... how do you THINK Genting's power business is going to do???
Obviously very very badly, since china is basically going to have much much cheaper power once these plants are running, you can expect Genting's power business in china to drop to RM 1 million once those nuclear power plants are up.

As for the gambling and hotel and theme park business... EVERYONE is assuming that gambling will be ok. But look at UK, US, Macau... every single country's gambling businesses are in trouble. You think that Genting will be fine? ... somehow, I think that if other country's gambling business is in trouble, malaysia's will be in EVEN MORE trouble.
As for hotel and theme park... meh. Airflights have dropped 20% in America for this thanksgiving season... I don't hold out much hope for the whole tourism sector.



Summary: Genting is in deep DEEP trouble.
That's what happens when you leave your core business of CASINOS,(which frankly was the most incredible deal ever, and just about everyone knows that Lim Goh Tong's greatest achievement in his life was getting the monopoly on casino license in Malaysia) and try to dabble in other areas which you don't understand, Lim JR.