Genting Malaysia net profit improves in Q1 despite fall in revenue

Net profit was up 42 per cent year-on-year while revenue declined by 6 per cent.

Malaysia.- Genting Malaysia has shared its financial results for the first quarter of the year. Net profit was MYR52m (US$12.2m), up 42 per cent year-on-year. Revenue was MYR2.5bn (US$613m), down 6 per cent in year-on-year terms and 6 per cent sequentially.

The group reported first-quarter adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of MYR737.2m (US$173m), an increase of 13 per cent year-on-year.

In Malaysia, revenue from the leisure and hospitality sector, which includes casino operations, was MYR1.62bn (US$382m), down 7 per cent year-on-year. Adjusted EBITDA was down 11 per cent to MYR518.2m (US$). According to the company, this reflects an industry trend that is observed in similar markets in the immediate region, particularly in the premium players segment.

In the United Kingdom and Egypt, the group reported a 7 per cent decrease in revenue to MYR413.4m (US$97.4m). Adjusted EBITDA declined by 25 per cent to MYR55.5m (US$1.3m), mainly due to expected higher operating and payroll-related expenses.

In the United States and the Bahamas, revenue declined by 3 per cent to MYR501.3m (US$501.3m) due to the strengthening of the ringgit against the US dollar. Adjusted EBITDA declined by 22 per cent to MYR119.0m (US$28m).

The company said: “Global economic conditions are expected to remain uncertain amid ongoing international trade and market volatility. In Malaysia, economic growth is expected to expand at a slower pace as heightened geopolitical tensions continue to weigh on both domestic and global sentiments.

“Despite ongoing global uncertainties, demand for international tourism is expected to remain resilient, although recovery is anticipated to be uneven across regions. Consequently, the regional gaming market may face increasing challenges. The group continues to be cautiously optimistic of the near-term prospects of the leisure and hospitality industry and remains positive in the longer-term.

“In Malaysia, the group remains focused on enhancing RWG’s appeal as a regional tourism hub by introducing new facilities and attractions, including new ecotourism experiences at Genting Highlands. Celebrations to commemorate the Genting Group’s 60th anniversary are underway, featuring a variety of special events, promotions and activities designed to engage visitors and enrich their experience at RWG. Meanwhile, the group will continue to place emphasis on driving key business segments by improving yield management systems, operational efficiencies and service delivery, while adopting prudent cost management and an agile approach to navigate the increasingly challenging operating environment.”

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