As its flagship resorts in Singapore and Malaysia reached all-time highs in the most recent quarter, Genting Berhad reported double-digit increase in sales and profitability.
The company with its headquarters in Malysia, Genting Berhad, generated RM6.1 billion ($1.3 billion, €1.2 billion, or £1.0 billion) in revenue from its leisure and hospitality business in the three months ending September 30, 2023. This was a 27% increase over Q3 2022.
Every one of its geographical zones, including its two biggest properties in Malaysia and Singapore, had double-digit growth.
Tourism recovery drives growth for Genting
Singapore’s Resorts World Sentosa (RWS) recorded a 42% increase in sales year over year, bringing in RM2.4 billion. The resort kept reaping the rewards of the long-term rebound in travel and tourism.
Resorts World Genting (RWG) had a 20% increase in revenue to RM1.7 billion in Malaysia. According to Genting, this was mostly because RWG’s gaming and non-gaming categories reported a larger amount of business.
Strong performances at its Resorts World hotels in New York City, Las Vegas, and Bimini contributed to a 16% increase in revenue from the US & Bahamas zone to RM1.5 billion.
In Q3 2023, Resorts World Las Vegas set a new revenue and EBITDA record. The US dollar’s strength, the casino’s impressive success, and the convention industry’s continuous expansion all contributed to the improved performance. In comparison to Q3 2022, when they were 86.4% and $232, respectively, hotel occupancy and average daily rate were 91.1% and $246 in Q3.
The removal of travel restrictions since June 2022 has resulted in a greater number of ship calls, which has enhanced RW Bimini’s operating performance and increased income.
Higher business volume also helped the UK & Egypt zone, which saw a 26% increase in revenue to RM495.0m.
The overall income of the Genting Berhad group, which includes its property, electricity, and plantation sectors, increased by 20% annually to RM7.4 billion.
Genting’s earnings boosted by higher revenues
With a profit of RM2.4 billion, the leisure and tourist segment reported a 43% increase. Malaysia’s profit increased 25% to RM714.0m, while Singapore’s profit increased 47% to RM1.2bn. The zones for the United States and the Bahamas was up 76% to RM370.4m, while the UK and Egypt were up 34% to RM99.1m.
Although Genting did not provide sector-specific outgoings breakdowns, adjusted EBITDA increased 33% to RM2.7 billion for the period. The total cost of sales increased from RM4.2 billion to RM4.9 billion for all business categories.
The main reason for the greater EBITDA in Malaysia, the UK, and Egypt, as well as the US and the Bahamas, was increased revenue. Nevertheless, in Q3, increased operational costs somewhat negated the increases in each market.
Strong growth throughout the year for Genting
The leisure and hospitality segment of Genting Berhad has had a prosperous year thus far. Revenue reached RM16.2 billion for the nine months ending September 30, a 33% increase. Singapore’s revenue has increased by 60% year over year, while Malaysia, the US, and the Bahamas have also seen double-digit increases.
At RM5.9 billion, adjusted EBITDA for the year ended September 30th represents a 46% increase. Of total, RM1.9 billion came from Malaysia and RM2.7 billion from Singapore.
Genting stated that it is still wary about the short-term prospects for the entertainment and hospitality sectors. On the other hand, it has long-term benefits. It is anticipated that the global economic recovery would continue to be unequal and gradual. It is anticipated that persistently tight monetary policy, a rise in geopolitical tensions, and slowing growth momentum in certain major countries due to rising inflation would continue to hinder global growth.
Although macroeconomic issues may persist as a crucial element in the successful recovery of the travel and tourism industries, Genting continued, “the positive outlook for international tourism is expected to be sustained.” “As airline capacity and air connectivity in the region improve, it is anticipated that the regional gaming market will continue to recover.”
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