GGRAsia – Overseas operations aid Genting Malaysia in 3Q

Overseas operations aid Genting Malaysia in 3Q

Nov 26, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck, World

Operations in the United States and the United Kingdom bolstered Genting Malaysia Bhd’s third-quarter results, said the company on Thursday.

For the entire third quarter, the group’s usual chief source of earnings – the Resorts World Genting casino complex outside Malaysia’s capital Kuala Lumpur – was shuttered as a Covid-19 countermeasure. After closing its doors temporarily on June 1, Resorts World Genting only reopened on September 30.

In the three months to September 30, revenue from leisure and hospitality – including gaming – was MYR406.0 million (US$95.9 million) from United Kingdom and Egypt operations, and MYR364.2 million from United States operations. By contrast, such revenue from Malaysia was only MYR17.7 million: on top of the Resorts World Genting casino complex, Genting Malaysia operates a few non-gaming resorts in the country.

The businesses outside Malaysia were the main contributors to the group narrowing year-on-year its quarterly loss to MYR289.25 million, compared to a loss of MYR704.64 million in the prior-year quarter.

In addition, “lower operating expenses coupled with payroll and related cost savings mitigated the impact to the group’s earnings” caused by the pandemic, said the group in a press release accompanying its quarterly results and filed on Thursday with Bursa Malaysia.

Nonetheless, amid the disruption to earnings from the Malaysian operation, third-quarter revenue overall fell 41.7 percent year-on-year to MYR826.27 million.

The group’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) declined 82.7 percent to MYR53.7 million.

No dividend was proposed or declared for the third quarter.

The group nonetheless said it was “encouraged by the positive reception” from consumers to the resumption of business at Resorts World Genting since September 30.

Genting Malaysia added that preparation work at its long-awaited SkyWorlds outdoor theme park at Resorts World Genting was “targeted” to be “complete by the end of 2021″. The firm added it was “currently preparing” for the theme park’s opening.