Analysts at JP Morgan predict that Genting Malaysia’s EBITDA will rise 26 per cent to RM450m (US$105.8m).
Malaysia.- Genting Malaysia’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) is expected to grow 26 per cent to RM450m (US$105.8m). According to J.P Morgan, Resorts World Genting will report a 13 per cent rise in visitation to 5.4 million, and a 17 per cent rise in spending per customer to RM280.
That compares to 4.8 million visitors and a spend of RM2.40 per person in 4Q21. J.P Morgan said the increase in lodging options around RWG had driven visitor growth, while RWG’s outlets were also more expensive.
It’s estimated that visitor arrivals to Genting’s resort in Malaysia could increase to 23 million and 27 million people in the fiscal year 2022 and fiscal year 2023 respectively. In March, the company announced it was going to enhance Resorts World Genting’s operational capacity to increase productivity and efficiency ahead of the reopening of Malaysia’s borders for international travellers on April 1.
For the fourth quarter of 2021, Genting Malaysia showed a return to profit of nearly MYR124.1m (US$29.5m) compared to an MYR258.2m loss a year earlier. It attributed the recovery to the easing of travel restrictions and the reopening of borders leading to a higher volume of business at Resorts World Genting. Meanwhile, the company was also able to improve its cost structure by using technology to reduce costs.