Genting returns to the black in 1Q with RM98mil profit

PETALING JAYA: Genting Bhd expects its respective business operations to continue to recover from the Covid-19 related impacts.

In a statement, the company said revenue in its first quarter ended March 31, 2023 (1Q23) increased 38% to RM5.8bil, mainly from the leisure and hospitality division of the group.

“The group’s adjusted earnings before interest, tax, depreciation and amortisation (ebitda) for 1Q23 of RM1.8bil, improved by 41% compared with RM1.3bil in 1Q22.

It said revenue and ebitda from Resorts World Sentosa continued to benefit from the ongoing recovery of regional travel and gaming demand.

“Resorts World Genting (RWG) recorded higher revenue in 1Q23 mainly due to higher business volume following further relaxation of Covid-19 restrictions and the reopening of national borders since April 1, 2022.

“Consequently, the ebitda increased but was partially offset by higher operating expenses in 1Q23.”

Additionally, the company said the leisure and hospitality businesses in the UK and Egypt recorded lower revenue due to the impact of ongoing inflationary pressures.

“Consequently, a lower ebitda was recorded compared with 1Q22 mainly due to lower revenue coupled with higher payroll and operating expenses.”

Genting Bhd said revenue from the leisure and hospitality businesses in the US and Bahamas increased primarily due to the strong operating performances from Resorts World New York City and Hilton Miami Downtown.

“Higher revenue was also recorded by Resorts World Bimini, following the relaxation on travel restrictions since June 19, 2022.

“Increase in ebitda was partially offset by higher operating and payroll related expenses in 1Q23.”

Meanwhile, Genting’s subsidiary, Genting Malaysia Bhd, said revenue in 1Q23 grew by 33% to RM2.28bil, while adjusted ebitda improved by 43% to RM592.9mil.

The company also registered pre-tax profit of RM41.3mil as compared to a pre-tax loss of RM116.1mil in the same period last year.

“The group reported a net loss of RM45.4mil in 1Q23, mainly due to deferred tax provisions recognised in the quarter.

“Notwithstanding, the group’s net loss narrowed by 69% from 1Q22.”

In Malaysia, Genting Malaysia said the leisure and hospitality business recorded higher revenue by 52% to RM1.4bil and an increase in adjusted ebitda by 66% to RM436.5mil.

“These improvements were primarily attributable to overall higher volume of business registered at RWG following the lifting of pandemic-related restrictions and the reopening of the national borders since April 1, 2022.

“As a result of the ramp up of the group’s operations, the group incurred higher operating expenses in 1Q23.”

Going forward, Genting Malaysia said the global economic environment is expected to gradually improve.

“However, downside risks continue to predominate amid ongoing geopolitical tensions and concerns surrounding the impact from monetary policy decisions.

“While Malaysia’s economic expansion is expected to moderate in line with a slower global economy, growth will continue to be supported by domestic demand.”