Global casino operator Genting Malaysia Bhd reported a third-quarter net profit attributable to shareholders of MYR177.4 million (US$37.9 million), compared to a profit of MYR11.4 million in the prior-year period. Judged sequentially, net profit was up 276.6 percent, according to a Thursday filing to Bursa Malaysia.
Revenue in the three months to September 30 reached nearly MYR2.71 billion, up 19.3 percent from a year ago. The figure was up 9.7 percent quarter-on-quarter.
Genting Malaysia operates Resorts World Genting, Malaysia’s only licensed casino property (pictured in a file photo). The group also runs casinos in the United States, the Bahamas, the United Kingdom, and Egypt.
The group’s third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) were MYR747.6 million, a 22.6-percent increase from a year earlier, and up 66.9 percent sequentially.
Third-quarter revenue in the leisure and hospitality segment – including casino operations – was MYR2.65 billion, a 19.6 percent year-on-year improvement. The figure was up 10.5 percent quarter-on-quarter.
Malaysian operations – including some non-gaming resort business as well as the casino at Genting Highlands – accounted for MYR1.68 billion of third-quarter leisure and hospitality revenue.
The Malaysia operation’s quarterly adjusted EBITDA stood at MYR563.9 million, up 26.7 percent from a year earlier, and an increase of 5.9 percent sequentially.
Genting Malaysia said in a separate release that the higher revenue recorded in the leisure and hospitality operations in Malaysia in the July to September period was “mainly attributable to the overall higher volume of business registered by Resorts World Genting’s gaming and non-gaming segments”.
The casino firm said it had “higher operating expenses” during the reporting period, “due to the continued ramp up of operations” at Resorts World Genting.
Genting Malaysia said it remained “cautious” on the near-term outlook of the leisure and hospitality industry.
“The positive outlook for international tourism is expected to be sustained, although macroeconomic concerns could continue being a critical factor in the effective recovery of the travel and tourism sectors,” stated the firm.
It added: “The regional gaming market is expected to continue recovering as airline capacity and air connectivity in the region improves.”
Genting Malaysia also said it was working to “strengthen the resilience of the business amid an increasingly challenging operating environment” in Malaysia.
“The group will optimise yield management and database marketing efforts to grow business volumes” and the number of visitors to Resorts World Genting. “Ongoing upgrading and development works … are progressing well, with new product offerings and attractions in the pipeline,” it added.
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Gaming revenue grossed by the U.S. commercial land-based gaming industry in 2023, according to data by the American Gaming Association