Genting to be removed from FTSE Bursa Malaysia index
Two Genting group stocks have been removed due to their level of market capitalisation.
Malaysia.- Genting Malaysia and its parent Genting Bhd will be removed from the FTSE Bursa Malaysia’s Kuala Lumpur Composite Index (KLCI). The decision was taken at the latest semi-annual review of the 30-stock index on the ground of the companies’ market capitalisation as of the close of trading on November 25.
The KLCI tracks the top 30 companies listed on Bursa Malaysia’s main board by full market capitalisation. Genting Malaysia and its parent company ranked 37th and 34th, respectively, as of yesterday (December 5). That’s their lowest since November 2020.
They will be replaced in the index by engineering firm Gamuda and retailer 99 Speed Mart Retail Holdings from December 23. The next review is scheduled for June 2025.
Earlier this month, analysts at Maybank Investment Bank lowered their full-year 2025 mass-market gross gaming revenue (GGR) forecast for Resorts World Genting (RWG), an integrated resort operated by Genting Malaysia, by 25 per cent. They said the adjustment was made due to the ongoing closure of the Circus Palace and Hollywood mass gaming floors, which was announced at the end of February. There is no current reopening date for the venues.
Genting Malaysia posted a net profit of MYR548.3m (US$123.3m) for the third quarter of the year. That’s a rise of 246.3 per cent in year-on-year terms. The figure was up from MYR62.7m (US$14.6m) in the second quarter of the year.
Revenue was up 1 per cent year-on-year and 3 per cent quarter-on-quarter to MYR2.74bn (US$615.7m). Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) were up 74.5 per cent year-on-year to MYR1.31bn (US$294.2m) and up 69.4 per cent when compared to the previous quarter.
Revenue in the leisure and hospitality segment – including casino operations was MYR1.68bn (US$377.5m) in Malaysia, flat in year-on-year terms and up 4.2 per cent in quarter-on-quarter terms. Adjusted EBITDA declined by 13 per cent year-on-year to MYR493.4m (US$110.9m), mainly due to higher operating expenses. The Group registered adjusted EBITDA margin of 29 per cent.
In the United Kingdom (UK) and Egypt, the group reported a 9 per cent increase in revenue to MYR538m (US$120.9m) while adjusted EBITDA grew by 5 per cent to MYR104m (US$23.4m) due to the higher volume of business. In the US and the Bahamas, the casino operator reported a marginal decline in revenue to MYR472.2m (US$106.1m). Adjusted EBITDA was down by 8 per cent to MYR124.2m (US$27.9m), mainly due to higher operating and payroll-related expenses.
