KUALA LUMPUR (Feb 29): Genting Bhd posted a net profit of RM150.1 million in the fourth financial quarter ended Dec 31, 2023 (4QFY2023), down 71.2% from the preceding quarter. 

However, the quarterly net profit is a contrast to a net loss of RM168.72 million a year ago, according to its bourse filing. 

Earnings per share stood at 6.82 sen against a loss per share of 3.41 sen in 4QFY2022. Quarterly revenue grew 14.2% to RM7.27 billion from RM6.36 billion last year.

Genting has declared a final dividend of nine sen per share, bringing the total dividends declared for the financial year ended Dec 31, 2023 (FY2023) to 15 sen per share — down from 16 sen per share in FY2022. The final dividend will be paid on April 19.

For the financial year ended Dec 31, 2023 (FY2023), Genting returned to the black in FY2023 after three years of losses, on the back of higher revenue driven by its leisure and hospitality division.

Genting posted an annual net profit of RM929.2 million against a net loss of RM299.91 million in FY2022, while annual revenue expanded 21.15% to RM27.12 billion from RM22.39 billion a year ago.

Going forward, Genting remains cautious about its outlook as it said the global economy will likely experience slow growth due to geopolitical tensions, uncertainties surrounding key monetary policies as well as inflationary pressures.

“International tourism is expected to recover amid increased global air connectivity and a rebound in Asian markets. However, macroeconomic and geopolitical headwinds could continue posing challenges to the sustained recovery of global travel demand. The regional gaming market is expected to continue improving in line with the positive outlook for international tourism,” it said.

Meanwhile, its 49%-owned Genting Malaysia Bhd is also cautious about its near-term prospects for leisure and hospitality, but remains positive on the industry's long-term prospects.

For Genting Plantations Bhd, in which Genting owns a 55.4% stake, it expects a better harvest for 2024, spurred by additional harvesting areas and the progression of existing mature areas into higher-yielding brackets in Indonesia. However, the production growth may be moderated by ongoing replanting activities in Malaysia. 

Shares of Genting finished three sen lower to RM4.77 on Thursday, with a market capitalisation of RM18.49 billion.