Malaysian tourism and gaming group Genting Malaysia Berhad reported a revenue of RM6.5 billion ($1.47 billion) in 3Q24, marking an 11 percent decline compared to RM7.4 billion ($1.65 billion) in the same quarter of the previous year.
This decrease in revenue was primarily driven by a downturn in the Leisure & Hospitality Division. The group’s adjusted EBITDA for 3Q24 stood at RM2.3 billion ($521 million), reflecting a 15 percent drop from RM2.7 billion ($614 million) in 3Q23.
Genting Malaysia Berhad operates Resorts World Genting, Malaysia’s sole licensed casino, and also runs casinos in the United States, the Bahamas, the United Kingdom, Singapore, and Egypt.
According to the financial results released on Thursday, revenue from Resorts World Genting (RWG) remained stable in 3Q24 compared to 3Q23. However, the division recorded a decline in EBITDA, primarily due to higher operating expenses in the current quarter.
The leisure and hospitality businesses in the UK and Egypt saw positive performance in 3Q24, with revenue increasing due to a higher volume of business. This contributed to a boost in EBITDA for these regions.
In the United States and the Bahamas, the group’s operations include Resorts World New York City (RWNYC), Resorts World Bimini (RW Bimini), and Resorts World Las Vegas (RWLV). Both RWNYC and RW Bimini experienced a slight decline in revenue compared to 3Q23. This reduction in revenue, combined with higher operating and payroll-related expenses, resulted in lower EBITDA for these properties.
In 3Q24, Genting Malaysia reported a profit before taxation of RM863.2 million ($194 million), a decrease from RM1.4 billion ($313 million) in 3Q23. The decline in profit was primarily attributed to lower EBITDA and higher write-offs for property, plant, and equipment. This was partly offset by a reduction in depreciation expenses during the quarter.
1Q-3Q performance
For the nine months ending September 30, 2024, the company reported financial improvements.
Genting Malaysia reported a revenue of RM20.8 billion ($4.69 billion) and EBITDA of RM7.1 billion ($1.6 billion), marking increases of 5 percent and 8 percent, respectively, compared to the same period last year.
The revenue growth was primarily driven by strong performance in the Leisure & Hospitality Division.
Resorts World Sentosa (RWS) contributed significantly to the revenue, with a 12 percent year-on-year increase, bringing its total revenue for the period to RM6.6 billion ($1.5 billion). However, EBITDA for RWS declined by 5 percent, falling to RM2.6 billion ($587 million) due to higher operating expenses.
Revenue from Resorts World Genting (RWG) also saw an uptick, mainly due to increased business volumes compared to the same period last year. Similarly, the group’s leisure and hospitality operations in the United Kingdom and Egypt reported higher revenue, driven by higher business volumes.
Both RWG, the UK and Egypt operations, as well as Resorts World New York City (RWNYC) and Resorts World Bimini (RW Bimini), saw improved EBITDA in the year-to-date period. This was largely a result of the revenue growth, although it was partly offset by higher operating expenses, including payroll costs.
Cautiously optimistic outlook
In the press release reporting the financial results, management mentioned that the firm’s performance for the remainder of the 2024 financial year may be affected by several factors, including global economic growth, which is expected to remain moderate. However, the outlook is ‘uneven’ across major economies, which could impact the Group’s performance in different regions.
Genting Malaysia emphasized that it is ‘cautiously optimistic’ about the near-term prospects of the leisure and hospitality industry and remains positive about the long term.
Genting notes that in Malaysia, the company is focused on driving sustainable growth through yield management and data analytics to improve performance. It will refine marketing strategies to boost visitation while offering value and choice to meet diverse customer preferences. The Group also plans to invest in new products and experiences, including ecotourism attractions set to launch in 2025.
This post was originally published on here
