Genting Malaysia Reverses First Quarter Loss With Second Quarter Profit

Genting Malaysia, the well-known global hospitality and leisure company, has reported a significant profit for the second quarter of 2023, reversing a multi-million dollar loss recorded in the first quarter.

The company announced that it recorded a profit of 30.3 million Malaysian Ringgit, which would convert into around 6.5 million U.S. dollars, during the second quarter of 2023. The result is a drastic improvement compared to the loss of 45.4 million Malaysian Ringgit recorded during the first quarter of 2023.

The dramatically improved results were driven by increasing revenues at Resorts World Genting, the company’s flagship casino and hospitality property in Malaysia. Revenue at this property went up by 17 percent year-on-year to a total amount of 1.53 billion Malaysian Ringgit, which helped inflate group-wide revenues to 2.47 billion Malaysian Ringgit. The company’s operations in the United Kingdom, Egypt, USA and Bahamas also enjoyed revenue increases, but a lot smaller.

The adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the whole group amounted to 447.9 million Malaysian Ringgit, a decrease of 28 percent year-on-year and 25 percent quarter-on-quarter. However, adjusted EBITDA for Resorts World Genting saw an increase of 16 percent to 532.3 million Malaysian Ringgit.

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The company’s earnings call for the second quarter of 2023 was followed by a note issued by Nomura analysts Tushar Mohata and Alpa Aggarwal, which underlined that the improved performance recorded by the company in Malaysia was mainly thanks to the increasing number of foreign visitors. In fact, total visitation went up from 4.9 million people in the first quarter to 5.4 million in the second quarter.

“Almost all hotel rooms are now operational in response to demand,” the analysts noted, while also pointing out that there is a lot of room for growth as visitors from China have not yet returned to pre-pandemic levels. The analysts revealed that the number of visitors from China was just 29 percent compared to pre-pandemic levels.

Overall guest numbers went up by 80 percent year-on-year and 10 percent quarter-on-quarter, and that also comprises domestic customers. However, the numbers of foreign guests went up by more than 100 percent year-on-year and by 32 percent compared to the previous quarter.

Source:

“Genting Malaysia slips into profit in 2Q23 as foreign visitors return to Resorts World Genting“, asgam.com, August 25, 2023.