Genting Malaysia posts net profit of US$7.8m for Q1

Net profit was down 83.1 per cent in quarter-on-quarter terms.

Malaysia.- Genting Malaysia has shared its financial results for the first quarter of the year. Net profit was MYR36.7m (US$7.8m), which compares to a net loss of MYR45.4m (US$9.65m) a year earlier. Revenue was MYR2.76bn (US$586.87m), up 21.1 per cent in year-on-year terms but down 1.6 per cent sequentially.

The group reported first-quarter adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of MYR654.1m, an increase of 10.3 per cent year-on-year and a 22.4 per cent decline quarter-on-quarter. The leisure and hospitality sector, which includes casino operations, generated revenue of MYR2.70bn, up 22.3 per cent compared to last year and flat compared to the previous quarter.

Malaysian operations, which include non-gaming resort activities and the Genting Highlands casino, contributed MYR1.75bn, a 24.7 per cent year-on-year increase. Quarterly adjusted EBITDA stood at MYR583.6m, up 33.7 per cent in year-on-year terms, and up 10.2 per cent sequentially.

The company attributed the increased revenue in the leisure and hospitality operations in Malaysia to a higher overall volume of business from gaming and non-gaming segments at Resorts World Genting (RWG). It expressed caution regarding the short-term outlook of the leisure and hospitality industry but said it remains optimistic about the long-term outlook.

The group plans to continue using technology to improve its yielding capabilities and enhance operational efficiencies and productivity in Malaysia. It said it remains committed to implementing cost management measures to improve its resilience.

In February, the company issued a statement confirming that Genting Casino 1 (Circus Palace) and Genting Casino 2 (Hollywood) at RWG have closed for renovation work. It said gaming at the SkyCasino will continue to operate as usual. It is now the only casino at the venue. The company did not clarify how long the renovations will take or when the affected areas will reopen. 

See also: Genting Malaysia buys US$100m stake in US casino operator Empire Resorts