Fri, Feb 17, 2017 - Page 10 News List

World Business Quick Take

Agencies

COMPUTERS

Lenovo misses projections

Lenovo Group Ltd’s (聯想) quarterly earnings missed projections as the world’s largest personal computer maker struggles to reboot a floundering PC and smartphone business. Net income fell 67 percent to US$98 million in the quarter that ended in December last year, Lenovo said in a filing. Revenue was down 6 percent to US$12.2 billion. Lenovo remains the world leader in a personal computer market struggling through a prolonged downturn as people opt for smartphones to handle everyday tasks. A rise in component prices also pressured margins. The Beijing-based company is negotiating a deal to tie up with Japan’s Fujitsu Ltd and shore up its position, an imperative given the smartphone business it bought with Motorola remains unprofitable.

BANKING

DBS profit at two-year low

DBS Group Holdings Ltd (星展銀行), Southeast Asia’s largest bank, reported its lowest quarterly profit in two years as bad-loan provisions almost doubled, overshadowing higher fees and trading income. Net income fell 9 percent to S$913 million (US$643 million) for the three months ended Dec. 31 last year from USS$1 billion a year earlier, the Singapore-based bank said yesterday in an exchange statement. That missed the S$1.014 billion average forecast of eight analysts surveyed by Bloomberg. Allowances for credit and other losses jumped 87 percent in the quarter from a year earlier to S$462 million, a “significant part” of which was due to cover the energy services industry, it said. The amount was slightly higher than the S$440 million estimated by RHB Research Institute.

HOTELS

Visitors shun US over ban

Marriott International Inc, the world’s biggest hotel operator, lost a small amount of group business due to travel restrictions under US President Donald Trump’s executive order last month, chief financial officer Leeny Oberg said. “We are aware of a handful of groups who have said, ‘You know what? I’m going to go elsewhere,’” Oberg said in a telephone interview after Marriott announced its fourth-quarter earnings on Wednesday. “Whether there’s a marked impact, I think it’s too soon to tell.” Group business tends to have a longer lead time, “so it’s going to take a little while to discern the impact,” she said.

GAMBLING

Star hit by China clampdown

China’s clampdown on overseas casino operators is being felt in Sydney as Star Entertainment Group Ltd reported a slump in its international high-rollers business after the detention of employees of rival Crown Resorts Ltd in China. Turnover from international VIP clients slumped 27 percent in November and December last year, the company said in a statement yesterday. Star, which operates Sydney’s only licensed casino, said the October last year detentions in China have created “uncertainty” and “caution” and it is looking to Southeast Asia to generate more high-roller income to reduce its reliance on China. Star’s earnings from the VIP business were also hurt from the sales and marketing costs tied to the diversification, the company said. Net income after tax in the six months ended Dec. 31 last year more than doubled to A$141.8 million (US$109 million), partly because a higher win rate against VIP gamblers. Historically, 80 percent of Star’s VIP business comes from Hong Kong, Macau and China, Bekier said on a call with investors.

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