KUALA LUMPUR (Feb 27): Genting Bhd (KL:GENTING) on Thursday reported its first quarterly loss in two years on higher finance costs and share of losses in joint ventures and associates.

The net loss of  RM169.39 million for the fourth quarter Dec 31, 2024 (4QFY2024) compares with a net profit of RM150.99 million a year earlier, according to the group's exchange filing. Its loss per share came in at 4.40 sen, against earnings per share of 3.9 sen previously.

This is Genting's first quarterly loss since 4QFY2022, when it booked a net loss of RM168.72 million.

The group’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) in 4QFY2024 was lower at RM1.68 billion, a 27% decline from RM2.29 billion in the previous year’s corresponding quarter.

Quarterly revenue dropped 5.3% to RM6.88 billion from RM7.27 billion in 4QFY2023, mainly due to reduced contributions from the leisure and hospitality division.

The strengthening of the ringgit against the British, US and Singapore currencies also contributed to the decreased revenue and adjusted Ebitda, said Genting in its filing.

The group declared a final dividend of five sen per share, compared with nine sen a year earlier. This brings the total payout for FY2024 to 11 sen per share, lower than the 15 sen paid in FY2023.

Genting's finance cost in the quarter rose 35.1% year-on-year to RM513.36 million from RM379.92 million. 

Impairment losses were lower by 54.7% at RM26.94 million, compared to RM57.52 million previously.

Its share of losses in joint ventures and associates more than tripled to RM69.29 million from RM20.8 million in 4QFY2023, while other losses incurred totalled RM184.59 million.

For the full financial year, Genting posted a net profit of RM882.95 million, a 4.96% decrease from RM929.20 million in FY2023, despite revenue rising 2.21% to RM27.72 billion from RM27.12 billion.

Full year adjusted Ebitda was flat at RM8.78 billion, compared with RM8.84 billion in FY2023.

Looking ahead, Genting said international tourism is expected to remain positive, with continued growth driven by strong demand and the ongoing recovery of global travel trends.

Consequently, the regional gaming market is expected to maintain its recovery momentum, it said.

Meanwhile, its 49.3%-owned Genting Malaysia Bhd (KL:GENM) is also cautiously optimistic about its near-term prospects for leisure and hospitality, and remains positive on the industry's long-term prospects.

“Efforts will also be directed toward refining marketing strategies to increase visitation at RWG (Resorts World Genting), whilst maintaining a diverse range of offerings that deliver maximum value to guests.

“Ongoing investments in infrastructure upgrades and new attractions at Genting Highlands, including new ecotourism experiences set to launch this year, will further elevate Genting Malaysia group’s offerings. In addition, to celebrate the Genting Group’s 60th anniversary, a series of promotional events and activities will be introduced throughout the year to attract more visitors to RWG,” the group added.

In the US, Genting said it remains focused on strategically expanding its footprint, enhancing operational capabilities and strengthening its market presence.

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