GGRAsia – GEN Malaysia 2Q revenue up 166pct y-o-y, narrows loss

GEN Malaysia 2Q revenue up 166pct y-o-y, narrows loss

Aug 25, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck

Global casino operator Genting Malaysia Bhd says its revenue rose by 166.0 percent year-on-year in the second quarter this year, to nearly MYR2.18 billion (US$486.5 million). The “group’s operations in Malaysia recorded strong recovery momentum, driven by the lifting of Covid-19 related restrictions and reopening of national borders,” said the casino firm on Thursday.

Genting Malaysia operates casino complex Resorts World Genting (pictured in a file photo), Malaysia’s only licensed casino property. The group also runs casinos in the United States – via associated businesses – and in the Bahamas, the United Kingdom, and Egypt.

Despite the increase in revenue, the company reported a net loss for the three months to June 30, albeit an improvement from a year ago. Genting Malaysia posted a net loss attributable to shareholders of just below MYR10.9 million, compared with MYR348.1 million in the second quarter of 2021, according to a filing to Bursa Malaysia.

The group reported second-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of MYR619.5 million, compared to adjusted EBITDA of MYR45.6 million in the prior-year period.

Genting Malaysia additionally declared an interim single-tier dividend of MYR.0.06 per ordinary share, to be paid on September 29.

The casino group said it was “cautiously optimistic” on the near-term outlook of the leisure and hospitality industry, but that it “remains positive in the longer-term.”

Malaysia reopened its tourism market first to domestic customers and then to overseas guests, the latter with effect from April.

“The recovery in international travel demand is expected to continue alongside the easing or removal of travel restrictions and reopening of markets. However, concerns of a weakening global economy may delay its recovery trajectory,” it added in Thursday’s filing.

The group’s leisure and hospitality operations in Malaysia recorded revenue of MYR1.31 billion, “more than five times of the level recorded in the second quarter of 2021,” said the firm. It also reported adjusted EBITDA of MYR459.1 million in its operations in Malaysia, compared to negative adjusted EBITDA of MYR94.2 million in the same period last year.

“These improvements were predominantly due to overall higher volume of business registered at Resorts World Genting following the further lifting of Covid-19 related restrictions and reopening of national borders in Malaysia since 1 April 2022,” stated Genting Malaysia.

It added, referring to a new outdoor theme park at its Genting Highlands operation: “Moreover, the opening of Genting SkyWorlds in February 2022 had contributed to higher non-gaming revenue in the second quarter of 2022.”

The group’s performance in the second quarter of 2021 had been “severely impacted by the imposition of strict travel restrictions nationwide amid the Covid-19 pandemic, in addition to the temporary closure of Resorts World Genting from 1 June 2021 until 29 September 2021,” it added.

Genting Malaysia also said it would seek to maximise yield from the facilities at its flagship gaming complex and “continue to ramp up operations and capitalise on demand for integrated resort offerings.”

“Up to three additional rides at Genting SkyWorlds are expected to be commissioned within the fourth quarter of 2022,” it added.