KUALA LUMPUR (Nov 28): Genting Malaysia Bhd's (KL:GENM) third-quarter net profit jumped over threefold from the previous year, as it recognised net unrealised foreign exchange (forex) translation gains totalling RM601.8 million on its US-dollar denominated borrowings, as opposed to a forex loss of RM1.7 million previously.
It made a net profit of RM569.16 million for the third quarter ended Sept 30, 2024 (3QFY2024) — its highest quarterly net profit in nearly six years since 4QFY2018's RM720.14 million — versus RM177.41 million in 3QFY2023, a bourse filing showed on Thursday.
This led to higher earnings per share of 10.04 sen for 3QFY2024, compared with 3.13 sen for 3QFY2023. No dividend was declared.
The group’s adjusted earnings before interest, taxation, depreciation and amortisation (Ebitda) improved by 75% to RM1.31 billion, from RM747.6 million a year ago, after taking into account the net unrealised forex translation gains.
Excluding the impact of the forex gains, the group’s adjusted Ebitda was down 6%.
Revenue was up a marginal 1.45% to RM2.75 billion from RM2.7 billion, on higher revenue from its leisure and hospitality businesses in the UK and Egypt.
For the first nine months ended Sept 30, 2024 (9MFY2024), Genting Malaysia's net profit surged to RM709.18 million, more than three times the RM197.15 million recorded in 9MFY2023, largely lifted by RM472 million in net unrealised forex translation gains on its US-dollar denominated borrowings, as opposed to net unrealised forex losses of RM301.5 million recorded previously.
Cumulative revenue grew 9.6% to RM8.18 billion, from RM7.47 billion a year earlier.
Genting Malaysia said it is cautiously optimistic about near-term prospects for the leisure and hospitality industry. “The outlook for international tourism is expected to remain broadly positive, driven by strengthening global demand, improved air connectivity, and the ongoing recovery in key markets. This momentum is expected to support the continued recovery of the regional gaming market,” it said.
In Malaysia, the group is planning new ecotourism attractions that are expected to be rolled out from 2025. In the UK, the group will explore opportunities to grow its market share, it said.
Genting Malaysia owns and operates Resorts World Genting in Malaysia, Resorts World New York City, as well as Resorts World Catskills and Resorts World Hudson Valley in the US — which are 49% owned via an associate company. It also has Resorts World Bimini in the Bahamas, Resorts World Birmingham, Crockfords Cairo in Egypt, and over 30 casinos in the UK. Genting Malaysia also owns Resorts World Kijal in Terengganu, and Resorts World Langkawi.
Shares in Genting Malaysia fell four sen or 1.85% to close at RM2.12 on Thursday, giving the group a market capitalisation of RM12.25 billion. The stock has dropped 21% since the start of the year.