One of the operational businesses that makes up the Genting Group conglomerate, Genting Malaysia Berhad, announced revenue for the third quarter of 2021 of MYR826.2 million (£146.1 million/€172.8 million).
By comparison, this was a 41.6% decline from the same period in 2020.
The main sources of income were entertainment and lodging. The income for Genting’s Resorts World Kijal, Genting, and Langkawi sites in Malaysia was MYR17.7m, a decrease of MYR1.16bn from the previous year.
Due to Resorts World Genting’s shutdown as a result of Malaysia’s unprecedented coronavirus (Covid-19) lockdown, revenue decreased by 99.0%. The property didn’t reopen until September 30, the last day of the reporting period.
In May, land-based casinos in the UK reopened following Covid-19 lockdowns, which helped to somewhat alleviate the impact of the Malaysian suspension. Revenue of MYR406.0 million was made by the Genting UK estate, Resorts World Birmingham, and Crockford Cairo in Egypt, representing a 209.0% increase.
This was mostly caused by the properties being closed for the most of Q3 2020, if not the whole quarter.
Resorts World Catskills, Resorts World New York City, and Resorts World Bimini in the Bahamas all had increases in revenue, which went from MYR69.9 million in 2020 to MYR364.2 million in Q3 2021. Due to the pandemic, Resorts World New York City stayed closed until June 2021.
Revenue from entertainment and lodging came to MYR787.9 million overall, a 43.0% decline from the previous year.
While investment revenue climbed by MYR1.6 million to MYR18.1 million, other property revenue increased by 14.0% to MYR20.3 million.
Moving on to costs, the cost of sales was MYR891.8 million, a 26.1% decrease from the previous year. But as a result, there was a gross loss of MYR65.6 million for the quarter, down from MYR 275.2 million in Q3 2020.
The company’s losses were decreased by MYR63.7 million by other income. Nonetheless, additional costs, losses, and impairment charges led to an operating loss of MYR252.7 million, a somewhat higher amount than the previous year.
Genting Malaysia’s portion of the MYR30.9 million in profits from an allied firm offset the MYR95.4 million in finance charges. Genting Malaysia’s net loss for the quarter was MYR307.0m, after paying MYR72.1m in taxes.
Due to the third quarter’s contribution, the operator’s nine-month revenue ended on September 30, MYR2.26 billion, a 35.0% decrease.
Genting Malaysia’s operational deficit was MYR906.0 million after costs, a 32.4% rise from 2020. The company’s cost of sales to far is MYR2.56 billion. Its nine-month net loss after taxes and financing charges was MYR1.30 billion.
Looking ahead, Genting cautioned that supply chain problems would cause it more suffering and could impede development coupled with rising energy prices and inflation.
It did, however, note that Mayalsia’s recovery from the Covid-19 epidemic has given its local properties a major advantage, particularly as border restrictions are loosened and vaccination campaigns support a rise in tourists.
