GGRAsia – GEN Malaysia 3Q revenue up as RWG recovery continues

GEN Malaysia 3Q revenue up as RWG recovery continues

Nov 24, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck

Global casino operator Genting Malaysia Bhd says its revenue rose by 174.9 percent year-on-year in the third quarter this year, to nearly MYR2.27 billion (US$505.4 million). Judged quarter-on-quarter, its revenue was up 4.1 percent, said the casino firm on Thursday.

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

The growth in the group’s third-quarter revenue was boosted by higher revenue in its Malaysian operations, “mainly due to higher business volume following the reopening of national borders since 1 April 2022,” stated Genting Malaysia.

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

In the third quarter of 2021, revenue at Resorts World Genting had been “severely impacted” by the temporary closure of the property from June 1 to September 29, “coupled with imposition of travel restrictions across the country caused by the adverse impact of the Covid-19 pandemic.”

Despite the increase in revenue in the third quarter this year, the company reported a net loss for the three months to September 30, albeit an improvement from a year ago. The net loss attributable to shareholders was just below MYR8.2 million, compared with a MYR307.0-million loss in the third quarter of 2021, according to the Thursday filing to Bursa Malaysia. The firm had a net loss of MYR10.9 million in the second quarter this year.

The group reported third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of MYR609.8 million, compared to adjusted EBITDA of MYR53.7 million in the prior-year period. Such EBITDA was down 1.6 percent quarter-on-quarter.

The casino group said it remained “positive” about the longer-term outlook of the leisure and hospitality sector, but warned of “potential headwinds in 2023 from global economic uncertainties as well as recessionary and inflationary pressures”.

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

“In Malaysia, economic growth is expected to be supported by domestic demand amid the weakening external environment,” said Genting Malaysia.

The firm added: “While international tourism is anticipated to continue improving, ongoing global economic headwinds and pandemic management measures in certain countries could impact demand for international travel. Consequently, the recovery of the regional gaming market could face some setbacks.”

Maybank Investment Bank Bhd said earlier this month that the Genting group was likely to be among the beneficiaries in the event of a full reopening of China’s borders that enabled resumption of outbound tourism by mainland China residents.

A unit of Genting Malaysia has submitted a proposal for Macau’s fresh 10-year gaming rights under the city’s related public tender. The company made no mention to its participation in the Macau tender process in its Thursday filing.