KUALA LUMPUR (Aug 24): Genting Malaysia Bhd (GenM) returned to the black in the second quarter ended June 30, 2023 (2QFY2023). The casino operator posted a net profit of RM47.12 million or 0.83 sen per share compared to a RM10.85 million net loss or 0.19 sen loss per share a year ago.

Since January last year, GenM has been in the red for four out of six quarters. The group incurred a net loss of RM27.4 million in the preceding quarter 1QFY2023 on revenue of RM2.28 billion.

The earnings in 2QFY2023 were mainly boosted by RM182.2 million net gain on disposal of property, plant and equipment.

Interest income in the quarter under review soared to RM29.2 million from RM3.3 million, according to its filing with Bursa Malaysia.

Quarterly revenue grew by 13.74% to RM2.47 billion from RM2.18 billion a year ago. GenM attributed higher revenue to the increase in volume of business by Resorts World Genting’s (RWG) gaming and non-gaming segments as well as higher contributions from Resorts World New York City (RWNYC) and the improved operating performance of Resorts World Bimini.

GenM’s operating profit came in higher at RM327.5 million against RM277.1 million a year earlier. However, the group’s finance costs of RM158.79 million trimmed more than half of its operating profit.

GenM declared an interim single-tier dividend of six sen per share, to be paid on Oct 2.

For the first half ended June 30, 2023 (1HFY2023), GenM recorded RM19.74 million net profit versus RM137.4 million net loss a year earlier, as revenue grew 22% to RM4.76 billion from RM3.9 billion.

On its outlook, GenM said it will leverage its integrated resort offerings to capitalise on the increasing inbound tourist arrivals to Malaysia to drive incremental foreign visitation to RWG.

“The group [also] will continue to invest in the infrastructure at Genting Highlands to elevate the customer experience as well as to enhance the safety and wellbeing of guests and the community at RWG,” it said.

GenM said it remains cautious on the volatility implicit in the operating environment, particularly in London. It will proactively manage costs and drive operational efficiencies to further improve the overall performance of the group’s operations.

“In the US, the group remains focused on strengthening its leading position in the New York State gaming market. The group will continue to intensify marketing efforts and promotional activities to grow the group’s US database whilst leveraging synergies between RWNYC and Empire’s assets to drive visitation and improve the overall returns of the group’s US operations.

Meanwhile, the group will continue to closely monitor developments surrounding the New York Gaming Facility Board’s Request for Application to solicit proposals for up to three commercial casinos in New York State,” it added.

GenM’s share price gained two sen to close at RM2.62 on Thursday, valuing it at RM15.56 billion.