February 23, 1998; Genting Berhad

February 23,1998

GENTING BERHAD
PRELIMINARY ANNOUNCEMENT

THE DIRECTORS OF GENTING BERHAD ARE PLEASED TO ANNOUNCE THE AUDITED RESULTS OF THE GROUP AND OF THE COMPANY FOR THE YEAR ENDED 31ST DECEMBER 1997, TOGETHER WITH THE COMPARATIVE RESULTS FOR THE YEAR ENDED 31ST DECEMBER 1996 AS FOLLOWS:

GROUP

COMPANY

GROUP

COMPANY

1997
RM mil

1996
RM mil

1997
RM mil

1996
RM mil

+ or -
%

1.(a)

TURNOVER

3,822.0

2,595.6

396.2

405.7

+47

-2

(b)

INVESTMENT AND INTEREST INCOME

121.7

107.5

207.4

213.8

+13

-3

2.(a)

PROFIT BEFORE TAXATION AND MINORITY INTERESTS AND AFTER INTEREST ON BORROWINGS AND DEPRECIATION
[see notes (i) and (ii) below]

1,457.7

1.185.0*

424.7

493.5*

+23

-14

(b)

SHARE OF RESULTS OF ASSOCIATED COMPANIES

84.8

75.9

+12

(c)

PROFIT BEFORE TAXATION

1,542.5

1,260.9*

424.7

493.5*

+22

-14

(d)

TAXATION

(346.7)

(336.7)

(106.7)

(78.8)

+35

(e)

(i)	PROFIT AFTER TAXATION BEFORE DEDUCTING MINORITY INTERESTS

1,195.8

924.2*

318.0

414.7*

+29

-23

(ii)	MINORITY INTERESTS

(424.5)

(278.3)

+53

(f)

PROFIT ATTRIBUTABLE TO MEMBERS OF THE COMPANY

771.3

645.9

318.0

414.7

+19

-23

Note:
(i)

INTEREST ON BORROWINGS CHARGED AS AN EXPENSE

3.8

N/A

(ii)

DEPRECIATION INCLUDING AMORTISATION

167.6

153.5

1.4

1.1

+27

		GROUP		COMPANY
		1997	1996	1997	1996
3.	PROFIT [2(e)) (i) ABOVE] AS A PERCENTAGE OF TURNOVER [1(a)] ABOVE	31.3%	35.6%*	80.3%	102.2%*
4.	PROFIT [2(f) ABOVE] AS A PERCENTAGE OF ISSUED CAPITAL AND RESERVES AT END OF YEAR	17.2%	17.6%*	13.7%	19.8%*
5.	EARNINGS IN SEN PER ORDINARY SHARE FOR THE YEAR BASED ON [2(f)]	109.6 SEN	92.0 SEN*
6.	NET TANGIBLE ASSETS BACKING PER ORDINARY SHARE	RM6.36	RM5.23

7.(a)

THE RESULTS OF THE GROUP AND OF THE COMPANY FOR THE YEAR ENDED 31ST DECEMBER 1997 HAVE NOT BEEN AFFECTED BY ANY MATERIAL FACTORS OR ITEMS OF AN EXTRAORDINARY NATURE OTHER THAN THE EXCEPTIONAL ITEMS SET OUT BELOW:

	GROUP		COMPANY
	1997 RM mil	1996 RM mil	1997 RM mil	1996 RM mil
GAIN ON SALE OF INVESTMENTS	374.8	23.2	-	-
WRITE OFF OF GOODWILL ARISING ON ACQUISITION OF A SUBSIDIARY COMPANY	(45.6)	-	-	-
PROVISION FOR DIMINUTION IN VALUE OF INVESTMENT IN AN OVERSEAS SUBSIDIARY COMPANY	(25.0)	-	-	-
GAIN ON SALE OF SHARES IN SUBSIDIARY COMPANIES TO OTHER SUBSIDIARY COMPANIES	-	33.7	19.8	106.7
SURPLUS ON DISPOSAL OF LEASEHOLD BUILDING BY A SUBSIDIARY COMPANY	-	23.1	-	-
GAIN ON SALE OF ASSETS IN RELATION TO THE NEWSPRINT PROJECT	-	17.8	-	-

	304.2	97.8	19.8	106.7

(b)	IN THE OPINION OF THE DIRECTORS, NO SIGNIFICANT TREND OR EVENT HAS OCCURRED BETWEEN 31ST DECEMBER 1997 AND THE DATE OF THIS REPORT WHICH WOULD AFFECT SUBSTANTIALLY THE RESULTS OF THE GROUP AND OF THE COMPANY.
(c)	*CERTAIN COMPARATIVE FIGURES HAVE BEEN RESTATED TO CONFORM WITH THE CURRENT YEAR'S PRESENTATION.

		GROUP		COMPANY		GROUP	COMPANY
		1997 RM mil	1996 RM mil	1997 RM mil	1996 RM mil	+ or - %	+ or - %
8.(a)	PROFIT [2(f) ABOVE] REPORTED FOR FIRST HALF YEAR	292.0	296.4*	157.7	206.7	-1	-24
(b)	PROFIT [2(f) ABOVE] FOR SECOND HALF YEAR	479.3	349.5*	160.3	208.0*	+37	-23

9.	TAXATION CHARGES FOR THE YEAR INCLUDE THE FOLLOWING:
	(a)	DEFERRED TAX CHARGE OF RM31,556,000 (1996 : RM17,538,000) FOR THE GROUP AND RM1,462,000 (1996 : DEFERRED TAX CREDIT OF RM2,395,000) FOR THE COMPANY.
	(b)	THERE IS NO MATERIAL ADJUSTMENT FOR UNDER OR OVER-PROVISION IN RESPECT OF PRIOR YEARS (1996 : UNDER-PROVISION OF RM3,186,000 FOR THE GROUP).
10.	THE RESULTS DO NOT INCLUDE ANY PRE-ACQUISITION PROFITS.
11.	SINCE THE PAYMENT OF THE INTERIM DIVIDEND FOR THE YEAR ENDED 31ST DECEMBER 1997 TO THE DATE OF THIS REPORT, THE COMPANY DID NOT MAKE ANY RIGHTS, BONUS AND/OR OTHER ISSUES OF EQUITY SHARES.
12.	THE DIRECTORS ARE OF THE OPINION THAT THE CURRENT ECONOMIC CONDITIONS IN THE REGION MAY HAVE AN UNFAVOURABLE IMPACT ON THE RESULTS FOR THE CURRENT YEAR.
13.(a)	A FINAL DIVIDEND OF 14.0 SEN LESS 28% TAX PER SHARE OF 50 SEN PAR VALUE EACH IN RESPECT OF THE FINANCIAL YEAR ENDED 31ST DECEMBER 1997 HAS BEEN RECOMMENDED BY THE DIRECTORS FOR APPROVAL BY SHAREHOLDERS. THE ENTITLEMENT DATE AND THE DATE OF PAYMENT OF THE SAID FINAL DIVIDEND WILL BE DETERMINED BY THE DIRECTORS AT A LATER DATE.
(b)	INTERIM DIVIDEND WAS 7.0 SEN LESS 30% TAX (NOW DEEMED AS 28%) PER SHARE.
(c)	ANNUAL DIVIDEND PER SHARE:

	1997	1996
INTERIM	7.0 SEN LESS 30% TAX (NOW DEEMED AS 28%)	7.0 SEN LESS 30% TAX
FINAL	14.0 SEN LESS 28% TAX	14.0 SEN LESS 30% TAX (NOW DEEMED AS 28%)

(d)	TOTAL ANNUAL NET DIVIDEND

	1997 RM mil	1996 RM mil
INTERIM	34.5	34.4
FINAL	71.0	68.8

	105.5	103.2

(e)	CLOSURE OF BOOKS THE DATES OF CLOSURE OF THE SHARE TRANSFER BOOKS AND REGISTER OF MEMBERS FOR THE PURPOSE OF DETERMINING SHAREHOLDERS' ENTITLEMENT TO THE FINAL DIVIDEND WILL BE ANNOUNCED AT A LATER DATE.