Genting Malaysia Berhad has reported a net loss of some RM485.6 million in 4Q24, a strong reversal from its RM217.6 million ($49 million) in profit for 4Q23, largely associated with costs linked to its bid for a gaming license in New York.
According to financials published on Thursday, the group also published a drop in adjusted EBITDA of 17 percent yearly, to RM621.5 million ($140.14 million), bullied by a revenue drop of 7.8 percent, to RM2.68 billion ($604.3 million).
In Malaysia, the group’s leisure and hospitality operations declined by just 1 percent yearly, to RM1.17 billion ($263.8 million), while adjusted EBITDA was down 7 percent, to RM490.4 million ($110.57 million). The group attributes this to ‘higher operating expenses during the period’.
Looking to the UK and Egypt operations, there was a 4 percent increase in revenue, to RM446.4 million ($100.6 million), ‘primarily driven by higher volume of business across the Group’s estate’. This comes despite currency fluctuations. Adjusted EBITDA was down for the segment, dropping by 39 percent, to RM55.2 million ($12.45 million), on higher operating costs and payroll expenses.
In the US and the Bahamas, Resorts World New York City saw revenue fall by 1 percent, to RM461.7 million ($104.1 million), also attributed to currency fluctuation. Adjusted EBITDA for the segment fell by 42 percent, to RM75.9 million ($17.11 million), on higher operating costs and payroll.
FY24
Overall the group finished the year on a high note, with total revenue up by 7 percent, to nearly RM10.7 billion ($2.41 billion), pushing a similar 1 percent increase in adjusted EBITDA to RM2.92 billion ($658.4 million).
The group notes that its Malaysia operations saw a 6 percent growth in revenue for leisure and hospitality, reaching RM6.28 billion ($1.42 billion), with adjusted EBITDA up by 1 percent, to RM2.1 billion ($473.5 million). The group notes that the improvements were ‘mainly attributable to the higher volume of business registered at Resorts World Genting’, despite higher operating expenses.
In the UK and Egypt, there was a 14 percent increase in revenue, to RM1.89 billion ($426.16 million), based on higher business volume, with a 2 percent increase in adjusted EBITDA, to RM297.9 million ($67.2 million).
Looking to the US and the Bahamas, there was a 6 percent yearly increase in revenue for leisure and hospitality, to RM1.98 billion ($446.45 million), mostly due to contributions from Resorts World New York City. Adjusted EBITDA fell by 4 percent, however, to RM530.2 million ($119.55 million).
Future outlook
Looking ahead, the group notes that it will hone its efforts on ‘refining marketing strategies to increase visitation’ at Resorts World Genting, while managing costs. The group highlights that its ongoing investments in infrastructure and attractions at Genting Highlands – including ecotourism experiences set to launch this year, will ‘further elevate the Group’s offerings’. The group is also planning a campaign of events and activities to celebrate the Genting Group’s 60th anniversary.
In the UK, the focus is on ‘identifying new growth opportunities to expand its market share’, mitigated by lowering costs and improving performance.
In the US, the group is aiming for one of the three new commercial casino licenses in New York, while expanding its current footprint via RWNYC and its Empire property.
Looking to the Bahamas, the aim is to focus on cruise operators, to drive more customers to its property: Resorts World Bimini.
