GGRAsia – GEN Malaysia interim dividend as 2Q profit doubles y-o-y

GEN Malaysia interim dividend as 2Q profit doubles y-o-y

Aug 29, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck

Net profit at global casino operator Genting Malaysia Bhd reached MYR62.7 million (US$14.5 million) for the three months to June 30, up 70.9 percent sequentially from first quarter’s MYR36.7 million, and 107.1-percent higher year-on-year. It took first-half 2024 profit to just under MYR99.4 million, compared to a MYR15.1-million loss in first-half 2023.

The board announced on Thursday an interim single-tier dividend of MYR0.06 per ordinary share, which it said was “in line with the group’s commitment to providing sustainable returns to shareholders”. It’s expected the interim dividend will be paid on October 7, said the firm in a filing to Bursa Malaysia.

Second-quarter revenue was nearly MYR2.67 billion in the three months to June 30, down 3.5 percent sequentially, but a 7.9-percent increase judged year-on-year.

A total of 60.5 percent of second-quarter 2024 revenue, or nearly MYR1.62 billion, was from the group’s flagship property and Malaysian casino monopoly, Resorts World Genting. Such revenue was up 5.3 percent year-on-year.

“This was predominantly due to higher volume of business from Resorts World Genting’s gaming and non-gaming segments,” said the company.

Genting Malaysia also runs casinos in the United Kingdom, Egypt, the United States and the Bahamas.

The U.K. and Egypt segment produced second-quarter revenue of MYR468.8 million, up 20.1 percent year-on-year. The U.S. and the Bahamas generated MYR527.8 million revenue in the second quarter, a gain of 11.0 percent year-on-year.

The firm said regarding the latter segment: “This was mainly attributable to higher contributions from Resorts World New York City and Resorts World Bimini.” The latter Bahamas property “continued to register improvements in operating performance, supported by an increased number of cruise calls”.

Second-quarter group adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) were MYR770.4 million, up 17.8 percent quarter-on-quarter, and up 72.0 percent from the prior-year period.

The leisure and hospitality segment as a whole generated adjusted EBITDA of MYR766.3 million, up 3.9 percent on second-quarter 2023.

Genting Malaysia said the performance of Empire Resorts Inc, the group’s associate company, “was aided by higher contributions from Resorts World Hudson Valley, notwithstanding a decline in gross gaming revenue at Resort World Catskills.”

Genting Malaysia added: “Empire reported improvements in adjusted EBITDA in second-quarter 2024 as compared to the same period last year.”