GGRAsia – Genting Malaysia returns to profit in 4Q, to pay dividend

Genting Malaysia returns to profit in 4Q, to pay dividend

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

Global casino operator Genting Malaysia Bhd reported on Thursday a profit of nearly MYR124.1 million (US$29.5 million) for the fourth quarter of 2021, compared to a loss of MYR258.2 million a year earlier.

Genting Malaysia additionally declared a special single-tier dividend of MYR.0.09 per ordinary share for full-year 2021, representing the total dividend for the year.

“While the group maintains its prudent approach to ensure that it continues to be well positioned financially to proactively respond to emerging trends and challenges in the wake of the Covid-19 crisis, the group remains committed to delivering value and sustainable returns to shareholders,” Genting Malaysia said in a press release filed to Bursa Malaysia.

The company stated that the improvement in its fourth-quarter performance was partially linked to “higher volume of business registered at Resorts World Genting, following its re-opening on September 30, 2021, which was well received.”

The company added: “The full lifting of interstate travel restrictions from October 11, 2021 further aided demand recovery at the resort.”

Genting Malaysia operates casino complex Resorts World Genting (pictured in a file photo), Malaysia’s only legal casino property. The whole of the complex was temporarily shut for four months last year, before being allowed to reopen on September 30.

Genting Malaysia had posted a loss of MYR289.25 million in the third quarter of 2021.

In the fourth quarter of 2021, the group recorded an 81.5-percent year-on-year improvement in total revenue to MYR1.89 billion. It achieved adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of MYR738.1 million, more than four times the level reported in the same quarter last year.

Genting Malaysia said full-2021 revenue declined by 8.2 percent in year-on-year terms to MYR4.16 billion. However, adjusted EBITDA more than doubled to MYR727.0 million, said the firm, adding that was “primarily driven by the strong recovery registered by the group’s overseas operations”.

Full-year net loss decreased by 55.5 percent to MYR1.05 billion in the period.

Revenue from Genting Malaysia’s domestic leisure and hospitality business grew by 49.2 percent to MYR961.9 million, while adjusted EBITDA more than doubled to MYR358.1 million.

The group also runs casinos in the United States – via associated businesses – and in the Bahamas, the United Kingdom and Egypt. Genting Malaysia said it had recorded improved revenue results, as measured in year-on-year terms, in all these markets.

Looking ahead, Genting Malaysia stated a potential reopening of Malaysia’s borders – as recently admitted by national authorities – would “further support the group’s recovery”. The company added it was focused “on the progressive roll out of the remaining attractions” at the Genting SkyWorlds theme park, which opened on February 8 at Resorts World Genting.

“The addition of Genting SkyWorlds complements Resorts World Genting’s extensive entertainment offerings and will be a key growth initiative for the group in Malaysia,” the company said.