Strong domestic performance drives GENM 18Q1 results

Genting Malaysia Berhad, operator of Resorts World Genting (RWG) in Malaysia reported a 16 percent improvement in net profit for the first quarter of 2018, according to a filing to Bursa Malaysia.

Net profit reached RM342.1 million (US$85.9 million), while total revenue for the group rose 8 percent to RM2.4 billion in 18Q1. Adjusted EBITDA improved by 8 percent to RM607.7 million.

Genting said its Malaysian operations recorded a 19 percent gain in revenue in the quarter, primarily due to overall higher business volumes as a result of the opening of new facilities and attractions under the Genting Integrated Tourism Plan (GITP).

The company also noted a growth in visitors to its flagship property – reaching 6.5 million in the quarter, up 26 percent year-on-year.

Domestically, Genting said it is now focused on rolling out of the Skytropolis indoor theme park and the highly anticipated Twentieth Century Fox World Theme Park which it expects will boost visitations further to the resort.

Overseas, Genting said it recorded overall lower revenue and adjusted EBITDA in United Kingdom and Egypt, mainly due to overall lower volume of business and hold percentage from its premium gaming segment.

It’s US and Bahamas operations also reported lower revenues due mainly to the strengthening of the Malaysian Ringgit to U.S. dollars.

Looking ahead, genting said it is optimistic on the opportunities and growth potential of international tourism.

“The Group will place emphasis on strategic marketing efforts and leverage on the introduction of new world-class facilities and attractions at RWG to expand into regional markets,” it said.

SHARE

Related Articles

Genting permanently closes UK’s Southport casino

Genting Malaysia's U.K. unit has permanently closed its casino in Southport in Northwest England, with 38 staff facing redundancy. The group has already closed casinos in Margate, Torquay and Bristol and has reduced its workforce in London, Glasgow, Edinburgh, Blackpool and Birmingham.

RWG says canteen workers test positive for Covid-19

Genting Malaysia said several canteen workers at its Resorts World Genting resort had tested positive for Covid-19 during regular health screening in early January. The canteens are not accessible to the public.

Analysts upbeat on Malaysian gaming sector

Analysts have turned more upbeat about the prospects for Malaysia’s gambling operators, despite a recent upswing in new Covid-19 cases, saying the sector is good value as stocks are still down between 15 to 26 percent on the prior year. 

Malaysia’s casinos to rebound faster than number operators: Kenanga

Kenanga Research expects Malaysia's casino operator to rebound more swiftly than its number forecast operators, as border restrictions ease. The sector valuation remains attractive as gaming stocks were still 15-26 percent cheaper than a year ago.

Resorts World Genting open, not affected by nearby restrictions

Resorts World Genting says it remains open and is not part of a nearby area that is subject to an Enhanced Movement Control Order.

Genting Malaysia stock hits nine-month high

Shares in Genting Malaysia rose nearly 5 percent on Monday, hitting their highest level in nine months, on expectations the government's easing of restrictions on interstate travel will benefit the casino operator.

Easing of travel restrictions to boost Genting Malaysia

The Malaysian government's easing of travel restrictions to allow inter-state travel from Dec. 7th should provide a boost to visitation to Genting Malaysia, UOB Kay Hian Malaysia Research says.
Resorts World Genting

Local VIPs buoy Genting’s Malaysia operations

Behind the sea of red in Genting Malaysia’s Q3 results, analysts found reason for cheer in the performance of its domestic operations, which generated a positive EBITDA of RM541 million ($133 million) in the quarter.

Genting Malaysia losses at US$182 million in Q3

Genting Malaysia recorded total revenues of over RM1.4 billion (US$354 million) in the third quarter of 2020, representing a 46 percent decline year-on-year. The group registered a net loss of RM726 million (US$182 million).
Resorts World Genting

Outlook brightens from H2, Fitch says

Jurisdictions benefiting from local support will continue to outperform in the first half of next year, with destination markets such as Singapore, Macau and Las Vegas, likely to begin a faster pace of recovery in the second half once vaccines become more widely available, Fitch Ratings said.