KUALA LUMPUR (Feb 22): Genting Malaysia Bhd (GENM) slipped into the red with a net loss of RM393.97 million for the fourth quarter ended Dec 31, 2022 (4QFY2022) compared to a net profit of RM174.12 million a year earlier, due to higher finance costs, impairment losses, depreciation charges and net foreign exchange translation losses.
The net profit achieved in 4QFY2021 was also aided by a RM119.8 million gain from the disposal of subsidiaries Authentic Gaming Ltd and Authentic Gaming Malta Ltd, the group noted in a bourse filing.
The casino operator — whose assets include Resorts World Genting (RWG) in Malaysia and Resorts World New York City and Resorts World Catskills in the US — reported a loss per share of 6.95 sen for 4QFY2022 compared to an earnings per share of 3.08 sen for 4QFY2021.
The group's quarterly revenue, however, increased 28.87% to RM2.43 billion from RM1.89 billion a year previously.
GENM declared a final dividend of nine sen per share, to be paid on April 14. This brings the total dividend for the year to 15 sen per share, an increase of 67% compared with the nine sen paid in the previous year.
For the full financial year, GENM narrowed its net loss to RM519.98 million from RM946.83 million in FY2021, as revenue more than doubled to RM8.6 billion from RM4.16 million previously.
This, the group said, was largely driven by the recovery of its operations in Malaysia, RWG, which was driven by higher volume of business following the lifting of Covid-19 related restrictions, and the reopening of national borders from April 2022
In contrast, the group’s operating performance in FY21 was severely impacted by the temporary closure of RWG for five months, in addition to the strict pandemic-related restrictions in place nationwide for most of the year.
Notably, this is the third straight annual loss suffered by GENM since it started to bleed in FY2020 when the Covid-19 outbreak hit its operations. The group had posted a net loss of RM2.26 billion for that year as revenue fell to RM4.53 billion from RM10.41 billion.
Moving forward, GENM continues to be cautiously optimistic on the near-term outlook of the leisure and hospitality industry and remains positive in the longer term.
In Malaysia, the group will continue to focus on ramping up its operations at RWG to pre-pandemic capacity whilst building on its service delivery and product offerings to enhance the quality of guest experience.
In the UK, the group remains cautious on the ongoing challenges in the operating landscape amid increasing cost-of-living pressures and the tightening of the regulatory environment. As the group navigates these uncertainties, it will maintain its focus on cost optimisation whilst reinforcing its operational and financial foundations to sustain its recovery momentum.
Meanwhile, in the US, GENM said it remains committed to exploring key opportunities to further strengthen its revenue- generation capabilities as the group continues to focus on reinforcing its position as the leading gaming operator in the northeast US region.
“The New York Gaming Facility Board recently issued a request for application to solicit proposals for up to three commercial casinos in New York State and the group will continue to closely monitor developments surrounding the RFA and respond accordingly.
“Meanwhile, the group recently opened Resorts World Hudson Valley, the newest casino in New York State, on Dec 28 2022 and the facility is expected to contribute positively to the group and Empire’s performance moving forward,” it added.
Shares in GENM closed one sen or 0.36% lower at RM2.75 on Thursday (Feb 23), valuing the group at RM16.33 billion.