KUALA LUMPUR (May 30): Genting Bhd (KL:GENTING) said its net profit for the first quarter ended March 31, 2024 (1QFY2024) surged several folds, mainly contributed by its leisure and hospitality segment in Malaysia and Singapore.

The diversified conglomerate’s net profit made a big leap to RM588.87 million from RM98.04 million, while quarterly revenue jumped 27.6% to RM7.43 billion from RM5.82 billion. 

Genting did not declare any dividend for the quarter under review.

In a bourse filing, Genting said the profit contributed by its leisure and hospitality segment in Singapore — which houses Resorts World Sentosa — doubled to RM1.32 billion from RM646.6 million.

This was largely thanks to the increased visitorship during the Chinese New Year festive season, as well as the relaxation of visa regulations between China and Singapore which came into effect in February.

Meanwhile, profit contributed from its hill-top casino also increased by 32% to RM733.1 million from RM555.9 million due to higher volume from both gaming and non-gaming segments.

Looking ahead, Genting expects the operating environment for the regional gaming market to improve amid the optimistic outlook for international tourism.

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

“In Malaysia, economic expansion is expected to continue given improvements in external demand and domestic spending, although the lingering effect of inflation will continue to be influenced by domestic policy decisions and financial market developments,” said Genting.

For its plantation division, its 55.4%-owned Genting Plantation Bhd (KL:GENP) expects an overall growth in fresh fruit bunches (FFB) production but flags that ongoing replanting activities would have a moderating effect on the production.

“In the short term, Genting Plantation expects palm oil prices to remain supported at current levels due to favourable price spreads against other edible oils,” it said. 

Genting’s plantation division saw its profit increase by 14% year-on-year to RM146.1 million from RM128.7 million.

Shares of Genting were up seven sen or 1.46% to RM4.85, valuing the group at RM18.8 billion. Year-to-date, the counter has climbed 28 sen or 6.13%.