Genting International PLC, subsidiary of Genting Bhd, reports a loss of 382 million Singapore dollars (US$272 million) in 2007, largely due to a 455 million dollar (US$324 million) loss on goodwill from its acquisition of British casino company Stanley Leisure, which is now called Genting Leisure.
"The impairment is largely attributable to the increase in gaming duty rates by the UK government effective April 2007, after the group's acquisition of Genting Stanley," noted the company. "The increase in gaming duty took the UK gaming industry by surprise as it was made without any prior consultation and indication."
"The smoking ban which came into full effect throughout the UK from July ... has also adversely impacted the gaming business."
Genting International's revenues did receive a significant boost in 2007 courtesy of the new UK operations. Overall revenue soared to 749 million dollars (US$533 million), compared to 293 million dollars (US$209 million) in 2006.
The company expects its UK earnings will grow even more in 2008. It has received six new licenses for casinos in the country.