Genting Malaysia Berhad has reported a strong performance for the first quarter of 2024, a recent dispatch by brokerage firm Maybank states, with core net profit surpassing expectations due to lower-than-anticipated tax rates.
However, the company’s EBITDA for the quarter was considered to be in line with forecasts.
Genting Malaysia Berhad recorded a 21 percent increase in revenue, hitting RM2.76 billion ($586.87 million) in 1Q24.
The group operates the Malaysia’s only licensed casino, Resorts World Genting, as well as having operations in the UK, Egypt, the US and the Bahamas.
During the period, net profit reached RM36.7 million ($7.8 million), reversing a loss of RM45.4 million ($9.65 million) recorded in the same quarter of last year.
Maybank stressed also that Genting Malaysia disclosed that the closures of Circus Palace and Hollywood have had minimal impact on its mass market segment.
‘Conversely, the company confirmed that its efforts to convert Resorts World New York City into a full casino will face delays,’ Maybank pointed out.
Despite these mixed signals, Maybank remains optimistic about Genting’s prospects, viewing the company as a strong post-COVID recovery play.
The investment bank considered that, notably, the first quarter’s core net profit was the highest since the last quarter of 2018, significantly driven by a high VIP win rate at Resorts World Sentosa (RWS).
