Global casino operator Genting Malaysia Bhd posted a net profit of MYR548.3 million (US$123.3 million) for the third quarter, up 246.3 percent from the prior-year period. It compared with a net profit of MYR62.7 million in the second quarter this year.
Third-quarter revenue was nearly MYR2.75 billion, an increase of 1.5 percent from a year earlier, and up 3.0 percent sequentially, said the firm in a Thursday filing to Bursa Malaysia.
Genting Malaysia operates Resorts World Genting (pictured in a file photo), Malaysia’s only licensed casino property. The group also runs casinos in the United States, the Bahamas, the United Kingdom, and Egypt.
Group-wide adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) were nearly MYR1.31 billion in the three months to September 30, up 74.5 percent from a year ago. Adjusted EBITDA rose by 69.4 percent quarter-on-quarter.
Genting Malaysia said its quarterly adjusted EBITDA improved “after taking into account net unrealised foreign exchange translation gains” of MYR601.8 million.
“Excluding the impact of the net unrealised foreign exchange translation, the group’s adjusted EBITDA is lower by 6 percent,” stated the firm.
A total of 61.2 percent of third-quarter revenue, or MYR1.68 billion, was from the group’s Resorts World Genting property in Malaysia. Such revenue “improved marginally” compared to a year earlier, stated the firm.
But adjusted EBITDA in the group’s leisure and hospitality operations in Malaysia fell by 12.5 percent year-on-year, to MYR493.4 million, “mainly due to higher operating expenses,” said Genting Malaysia.
“The group registered an adjusted EBITDA margin of 29 percent [in the reporting period] as compared to 34 percent in third-quarter 2023” in its leisure and hospitality operations in Malaysia, it added.
In the United Kingdom and Egypt, the group reported an 8.7-percent increase in revenue to MYR538.0 million, while adjusted EBITDA grew by 4.9 percent to MYR104.0 million. “These improvements were largely attributable to the higher volume of business registered across the group’s estate,” noted Genting Malaysia.
In the United States and the Bahamas, the company reported a marginal decline in revenue, to MYR472.2 million. The group also registered lower adjusted EBITDA by 8.3 percent, to MYR124.2 million, “mainly due to higher operating and payroll related expenses”.
In Thursday’s filing, Genting Malaysia said “downside risks” to growth remained “amid new developments in the global environment”.
“The outlook for international tourism is expected to remain broadly positive, driven by strengthening global demand, improved air connectivity, and the ongoing recovery in key markets,” stated the firm.
“This momentum is expected to support the continued recovery of the regional gaming market.”
“The group is cautiously optimistic of the near-term prospects of the leisure and hospitality industry and remains positive in the longer-term,” it added.
Earlier this week, Genting Malaysia said its unit Genting Americas Inc had filed a motion to have dismissed a civil case claiming US$600 million in damages. The case involves an investor dispute about the Resorts World Bimini casino complex in the Bahamas.
