GENTING HONG KONG : ANNOUNCES FIRST HALF RESULTS FOR 2016

RESULTS RELEASE 23 August 2016 FOR IMMEDIATE RELEASE INTERNATIONAL GENTING HONG KONG GROUP ANNOUNCES FIRST HALF RESULTS FOR 2016 Highlights

The commentary below is prepared based on the comparison of results for the first half of 2016 ("1H2016") and 2015 ("1H2015") of the Group.

Genting Hong Kong Group

Turnover

Revenue from cruise and cruise-related activities increased 44.8% to US$384.0 million in 1H2016 compared with US$265.1 million in 1H2015. Net Revenue in 1H2016 increased 41.2% to US$307.8 million from US$218.0 million in 1H2015 due to an increase in Capacity Days of 20.9% and an increase in Net Yield of 16.8%. The increase in both Capacity Days and Net Yield was primarily due to the inclusion of full six months' contribution of Crystal Cruises in 1H2016, as compared with its post-acquisition contribution since 15 May 2015 in 1H2015.

Revenue from non-cruise activities was US$51.9 million in 1H2016 compared with US$10.0 million in 1H2015 primarily contributed by revenue from yard repairs and conversion activities as a result of the acquisition of shipyards in Germany.

Costs and Expenses

Total operating expenses, excluding depreciation and amortisation, increased 73.1% to US$344.7 million compared with US$199.1 million in 1H2015 due to additional operating expenses mainly contributed by Crystal Cruises and recently acquired businesses. Selling, general and administrative ("SG&A") expenses, excluding depreciation and amortisation, increased 157.6% to US$119.3 million in 1H2016 from US$46.3 million in 1H2015 mainly due to inclusion of Crystal Cruises and recently acquired businesses, one-off acquisition related expenses, one-time start up and marketing costs for the launch of new Dream and Crystal cruise brands and products in 2016.

Net Cruise Cost per Capacity Day increased 45.7% primarily due to inclusion of Crystal Cruises and higher expenses of existing Star Cruises fleet, such increase was partially offset by lower fuel expenses (1H2016: US$283 per metric ton; 1H2015: US$388 per metric ton).

Total depreciation and amortisation increased 26.5% to US$57.7 million in 1H2016 compared with US$45.6 million in 1H2015 primarily due to the additional depreciation of Crystal Cruises fleet and shipyards in Germany.

EBITDA

The Group's EBITDA for 1H2016 was negative US$28.1 million compared with US$29.6 million in 1H2015.

Share of Profits of Joint Ventures and Associates

Share of profit of Travellers totalled US$19.1 million in 1H2016 compared with US$22.6 million in 1H2015, primarily due to increase in general marketing and depreciation expense during the period.

No profit contribution from NCLH in 1H2016 compared with US$2.9 million in 1H2015, primarily due to the reduction of the Group's equity interest in NCLH and reclassification of NCLH from "associate" to "available-for-sale investment" in May last year.

Other Income / (Expenses), net

Net other income in 1H2016 amounted to US$11.8 million compared with US$12.4 million net other expenses in 1H2015. In 1H2016, net other income mainly included a US$7.2 million foreign exchange gain resulting primarily from the appreciation of several currencies against US dollars.

In 1H2015, net other expenses mainly included a US$15.1 million foreign exchange loss resulting primarily from the depreciation of several currencies against US dollars.

Other Gains, net

No net other gains was recorded in 1H2016. Net other gains of US$2,171.2 million in 1H2015 included a US$212.5 million gain on disposals of certain NCLH Shares and a gain on de-recognition of an associate amounting to approximately US$1,954.5 million.

Net Finance Income / Costs

Net finance income (i.e. finance income, net of finance costs) in 1H2016 of US$4.8 million was recorded compared with the net finance costs (i.e. finance costs, net of finance income) amounted to US$3.4 million in 1H2015 primarily due to lower interest expenses resulting from lower outstanding loan balances and conversion of remaining convertible bonds in June 2015, and higher capitalised interests for certain qualifying assets.

(Loss) / Profit Before Taxation

Loss before taxation for 1H2016 was US$49.7 million compared with the profit before taxation of US$2,168.4 million for 1H2015.

(Loss) / Profit Attributable To Equity Owners

Loss attributable to equity owners of the Company was US$53.6 million for 1H2016 compared with the profit attributable to equity owners of US$2,165.0 million in 1H2015.

Travellers

The commentary below is based on Travellers' financial statements prepared in accordance with the Philippine Accounting Standards. Figures, originally reported by Travellers in Philippine Peso, have been translated into U.S. dollars in conformity with the Group's reporting currency.

In 1H2016, Travellers reported US$292.0 million in total revenues and US$63.7 million in EBITDA, compared with US$318.4 million in total revenues and US$79.4 million in EBITDA in 1H2015.

Direct costs amounted to US$109.7 million in 1H2016, which decreased from US$117.8 million in 1H2015, mainly due to lower gaming license fee during the period.

General and administrative expenses amounted to US$109.4 million in 1H2016, compared with US$98.2 million in 1H2015. The increase was mainly due to increase in general marketing and depreciation expense.

Finance costs amounted to US$6.0 million in 1H2016, which decreased from US$12.3 million in 1H2015, primarily due to the higher capitalisation of borrowing costs in connection with higher capital expenditure for the ongoing developments of Phase 2 and Phase 3.

Net income decreased from US$53.2 million in 1H2015 to US$38.3 million in 1H2016.

The cash and cash equivalents balance increased from US$262.0 million as at 31 December 2015 to US$275.3 million as at 30 June 2016, while the loans and borrowings balance increased from US$303.4 million as at 31 December 2015 to US$366.6 million as at 30 June 2016 to fund the working capital.

CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2016 PREPARED IN ACCORDANCE WITH HONG KONG FINANCIAL REPORTING STANDARDS

Six months ended 30 June
2016	2015
US$'000	US$'000
unaudited	unaudited
Turnover	435,825	275,083
Operating expenses
Operating expenses excluding depreciation and amortisation	(344,677)	(199,147)
Depreciation and amortisation	(50,343)	(38,835)
(395,020)	(237,982)
Selling, general and administrative expenses
Selling, general and administrative expenses excluding depreciation and amortisation	(119,278)	(46,303)
Depreciation and amortisation	(7,361)	(6,778)
(126,639)	(53,081)
(521,659)	(291,063)
(85,834)	(15,980)
Share of profit of joint ventures	279	4,141
Share of profit of associates	19,248	24,821
Other income / (expenses), net	11,808	(12,389)
Other gains, net	-	2,171,232
Finance income	5,412	5,177
Finance costs	(576)	(8,555)
36,171	2,184,427
(Loss) / Profit before taxation	(49,663)	2,168,447
Taxation	(4,922)	(3,616)
(Loss) / Profit for the period	(54,585)	2,164,831
(Loss) / Profit attributable to:
Equity owners of the Company	(53,639)	2,165,033
Non-controlling interests	(946)	(202)
(54,585)	2,164,831
(Loss) / Earnings per share attributable to equity owners of the Company
- Basic (US cents)	(0.63)	26.77
- Diluted (US cents)	(0.63)	26.76