KUALA LUMPUR (Aug 25): The reopening of national borders amid strong pent-up demand for gaming and travel has been a boost to both Genting Bhd and Genting Malaysia (GenM), as their latest quarterly performance improved with revenue jumping substantially, narrowing their net losses.  

Both also declared dividends on their improved financial performance. Genting announced a seven sen per share interim dividend to be paid on Oct 6, while its 49.5%-owned GenM plans to pay an interim dividend of six sen per share, payable on Sept 29.

According to their bourse filings, Genting’s net loss narrowed to RM59.53 million in the second quarter ended June 30, 2022 (2QFY22) from RM563.53 million in 2QFY21, as revenue jumped 93.63% to RM5.69 billion from RM2.94 billion, driven by stronger contributions from its leisure and hospitality business, including those parked under its 49.5%-owned unit, GenM.

This resulted in loss per share shrinking to 1.55 sen in 2QFY22, from 14.63 sen in 2QFY21, its bourse filing showed.

Compared with 1QFY22, net loss narrowed by 70.18% from RM199.68 million as revenue grew 34.95% from RM4.21 billion.

For the six months ended June 30 (1HFY22), Genting trimmed its net loss to RM259.22 million from RM895.29 million in 6MFY21, with revenue jumping 90.77% to RM9.9 billion from RM5.19 billion.

Meanwhile, GenM trimmed its 2QFY22 net loss by 96.88% to RM10.85 million from RM348.11 million in 2QFY21, with loss per share dropping to 0.19 sen from 6.16 sen as revenue more than doubled to RM2.18 billion from RM817.87 million.

Compared with 1QFY22, GenM managed to narrow its net loss by 91.42% from RM126.53 million as revenue expanded 26.39% from RM1.72 billion.

For the cumulative 1HFY22, GenM's net loss narrowed by 83.48% to RM137.38 million from 1HFY21's RM831.7 million with revenue climbing 170.39% to RM3.9 billion from RM1.44 billion.

On prospects, Genting said the recovery in international travel demand is expected to continue alongside the easing or removing of travel restrictions and the reopening of markets. However, it is concerned that a weakening global economy might delay its recovery trajectory.  

GenM, meanwhile, is cautiously optimistic about near-term outlook of the leisure and hospitality industry but remains positive in the longer term.

In Malaysia, GenM plans to continue ramping up its operations following the reopening of the economy and to capitalise on the demand for the offerings of its integrated resorts.

Genting shares closed nine sen or 1.95% higher at RM4.70, giving the group a market capitalisation of RM18.22 billion. GenM settled seven sen or 2.41% higher at RM2.98, valuing it at RM17.7 billion.