KUALA LUMPUR (May 30): Genting Malaysia Bhd (GenM) (KL:GENM) posted a first quarter net profit of RM57.78 million, compared to a net loss of RM27.38 million a year earlier, on the back of higher revenue from its leisure and hospitality business.
Net profit for the quarter ended March 31, 2024 (1QFY2024), however, came in lower than the two preceding quarters — RM177.41 million in 3QFY2023 and RM239.64 million in 4QFY2023.
GenM's net profit in the pre-pandemic year of FY2019 had ranged from RM268.29 million to RM416.48 million.
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 earnings per share of 1.02 sen for 1QFY2024, against a loss per share of 0.48 sen in 1QFY2023.
Quarterly revenue rose 21.08% to RM2.76 billion from RM2.28 billion.
The group did not declare any dividend for the quarter under review.
GenM's adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) grew 10% to RM654.1 million in 1QFY2024 from RM592.9 million a year ago.
The group said the adjusted Ebitda in 1QFY2024 included the impact of net unrealised foreign exchange translation losses of RM130 million in the group’s US dollar denominated borrowings, as compared to net unrealised forex translation losses of RM39 million in 1QFY2023. Excluding the impact of the unrealised forex translation, the group’s adjusted Ebitda increased 24%.
Moving forward, GenM said the operating environment for the regional gaming market is expected to continue improving, supported by an optimistic outlook on international tourism amid ongoing restoration in global capacity and air connectivity.
Domestically, it said the continued implementation of tourism-related measures, such as the visa-free entry for citizens of China and India, is expected to contribute positively to the local tourism sector.
“The group remains cautious of the near-term prospects of the leisure and hospitality industry but remains positive in the longer-term,” it added.
In Malaysia, GenM said that to drive growth in key business segments, the group will continue to implement innovative marketing approaches to broaden customer outreach whilst capitalising on its value propositions. Ongoing investments in new and refreshed products and experiences are underway with new ecotourism attractions in the pipeline.
In the UK, the group said it maintains a vigilant and adaptable approach to market shifts amid a challenging operating environment. The group will remain alert to revenue and growth opportunities whilst maintaining cost discipline to strengthen its capabilities and enhance its competitiveness.
Meanwhile, in the US, GenM said it 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 and respond accordingly.
“As competition in the region increases, the group remains committed to driving growth and profitability. This includes harnessing synergies between Resorts World New York City and Empire’s assets to enhance the overall returns of the group’s US business,” it added.
Shares in GenM closed four sen or 1.4% higher at RM2.80 on Thursday, valuing the group at RM16.63 billion.