February 24, 1999; Genting Berhad

February 24,1999

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 1998 TOGETHER WITH THE COMPARATIVE RESULTS FOR THE YEAR ENDED 31ST DECEMBER 1997 AS FOLLOWS:

GROUP

COMPANY

GROUP

COMPANY

1998
RM mil

1997
RM mil

1998
RM mil

1997
RM mil

+ or -
%

1.(a)

TURNOVER

3,369.8

3,822.0

378.6

396.2

- 12
----------------

- 4
----------------

1.(b)

INVESTMENT AND INTEREST INCOME

155.5

121.7

206.1

207.4

+ 28

- 1

2.(a)

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

803.4

1,457.7

394.3

424.7

- 45

- 7

2.(b)

SHARE OF RESULTS OF ASSOCIATED COMPANIES

106.3

84.8

+ 25

2.(c)

PROFIT BEFORE TAXATION

909.7

1,542.5

394.3

424.7

- 41

- 7

2.(d)

TAXATION

(364.1)

(346.7)

(108.9)

(106.7)

+ 5

+ 2

2.(e)

(i)	PROFIT AFTER TAXATION BEFORE DEDUCTING MINORITY INTERESTS

545.6

1,195.8

285.4

318.0

- 54

- 10

(ii)	MINORITY INTERESTS

(131.3)

(424.5)

- 69

(f)

PROFIT ATTRIBUTABLE TO MEMBERS OF THE COMPANY

414.3

771.3

285.4

318.0

- 46

- 10

Note:

(i)	INTEREST ON BORROWINGS CHARGED AS AN EXPENSE

7.2

3.8

+ 89

(ii)	DEPRECIATION INCLUDING AMORTISATION

215.0

167.6

2.1

1.4

+ 28

+ 50

GROUP

COMPANY

1998

1997

1998

1997

PROFIT [2(e) (i) ABOVE] AS A PERCENTAGE OF TURNOVER [1(a)] ABOVE

16.2%

31.3%

75.4%

80.3%

PROFIT [2(f) ABOVE] AS A PERCENTAGE OF ISSUED CAPITAL AND RESERVES AT END OF YEAR

8.7%

17.2%

11.1%

13.7%

EARNINGS IN SEN PER ORDINARY SHARE FOR THE YEAR BASED ON [2(f)]

58.8 SEN

109.6 SEN

NET TANGIBLE ASSETS BACKING
PER ORDINARY SHARE

RM6.78

RM6.36

7.(a)

THE RESULTS OF THE GROUP AND OF THE COMPANY FOR THE YEAR ENDED 31ST DECEMBER 1998 HAVE NOT BEEN AFFECTED BY ANY MATERIAL FACTORS OR ITEMS OF AN EXTRAORDINARY NATURE OTHER THAN THE EXCEPTIONAL ITEMS SET OUT BELOW.

GROUP

COMPANY

1998
RM mil

1997
RM mil

1998
RM mil

1997
RM mil

GAIN ON SALE OF INVESTMENTS

70.5

374.8

WRITE OFF OF GOODWILL

ARISING ON ACQUISITION OF ASSOCIATED/SUBSIDIARY COMPANIES

(373.2)

(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

19.8

(302.7)

304.2

19.8

7.(b)

IN THE OPINION OF THE DIRECTORS, NO SIGNIFICANT TREND OR EVENT HAS OCCURRED BETWEEN 31ST DECEMBER 1998, AND THE DATE OF THIS REPORT WHICH WOULD AFFECT SUBSTANTIALLY THE RESULTS OF THE GROUP AND OF THE COMPANY.

GROUP

COMPANY

GROUP

COMPANY

1998
RM mil

1997
RM mil

1998
RM mil

1997
RM mil

+ or -
%

(a)	PROFIT [2(f) ABOVE] REPORTED FOR FIRST HALF YEAR

283.9

292.0

97.0

157.7

- 3

- 38

(b)	PROFIT [2(f) ABOVE] FOR SECOND HALF YEAR

130.4

479.3

188.4

160.3

- 73

+ 18

TAXATION CHARGES FOR THE YEAR INCLUDE THE FOLLOWING:

	(a)	DEFERRED TAX CHARGE OF RM28,148,000 (1997 : RM31,556,000) FOR THE GROUP AND DEFERRED TAX CREDIT OF RM160,000 (1997 : DEFERRED TAX CHARGE OF RM 1,462,000) FOR THE COMPANY.
	(b)	THERE IS NO MATERIAL ADJUSTMENT FOR UNDER OR OVER-PROVISION IN RESPECT OF PRIOR YEARS (1997 : NIL ).

10.

THE RESULTS DO NOT INCLUDE ANY PRE-ACQUISITION PROFITS.

11.

SINCE THE PAYMENT OF THE INTERIM DIVIDEND FOR THE YEAR ENDED 31ST DECEMBER 1998 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 RESULTS FOR THE CURRENT YEAR WILL CONTINUE TO BE DEPENDENT ON THE ECONOMIC CONDITIONS IN THE REGION.

13.

AS PREVIOUSLY ANNOUNCED, THE GROUP HAS SET UP A TASK-FORCE COMMITTEE TO ADDRESS THE Y2K ISSUES. THE GROUP IS CURRENTLY IN THE TESTING, VALIDATION AND REMEDIATION PHASES OF THE PROJECT. THE GROUP HAS ALSO COMMENCED THE DEVELOPMENT OF CONTINGENCY PLANS.

THE TOTAL COST INCURRED TO-DATE IS APPROXIMATELY RM1.5 MILLION FOR THE GROUP (RM0.7 MILLION FOR THE COMPANY). THE TOTAL COST OF THE Y2K PROJECT IS ESTIMATED TO BE RM6.9 MILLION FOR THE GROUP (RM1.0 MILLION FOR THE COMPANY).

14.(a)

A FINAL DIVIDEND OF 12.0 SEN LESS 28% TAX PER SHARE OF 50 SEN PAR VALUE EACH IN RESPECT OF THE FINANCIAL YEAR ENDED 31ST DECEMBER 1998 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 AND ANNOUNCED AT A LATER DATE

14.(b)

INTERIM DIVIDEND WAS 6.5 SEN LESS 28% TAX PER SHARE.

14.(c)

ANNUAL DIVIDEND PER SHARE

INTERIM

1998

6.5 SEN LESS 28% TAX

1997

7.0 SEN LESS 30% TAX
(NOW DEEMED AS 28%)

FINAL

12.0 SEN LESS 28% TAX

14.0 SEN LESS 28% TAX

(d)

TOTAL ANNUAL NET DIVIDEND

	1998 RM mil	1997 RM mil
INTERIM	33.0	34.5
FINAL	60.9	71.0

	93.9	105.5

BY ORDER OF THE BOARD

TAN SRI LIM GOH TONG
CHAIRMAN AND JOINT MANAGING DIRECTOR
GENTING BERHAD
24TH FEBRUARY 1999