Genting Berhad has announced a 17% increase in revenue for the three months to 30 June 2017 and a 9% increase for the first six months of the year on the back of strong growth at its Resorts World Sentosa and Resorts World Genting properties.
Singapore’s Resorts World Sentosa (RWS) saw revenue soar 31% for the second quarter to RM1.85 billion while Resorts World Genting (RWG) grew 7% to RM1.44 billion, helping total group revenue reach RM4.95 billion in 2Q17. Profit for the quarter was up 47% to RM883.3 million with Adjusted EBITDA increasing 51% to RM1.84 billion.
“Business momentum remained healthy for RWS with increased revenue attributable to higher rolling win percentage in the premium player business,” the company said in a filing. “Adjusted EBITDA improved significantly in 2Q17 with all major businesses registering stronger EBITDA on the back of improved operating margin as RWS continued with its strategy of focusing on better margin business and maintaining lower impairment of receivables.
“In the gaming business segment, RWS delivered steady earnings as the VIP business remains stable. Following the execution of a more measured credit policy, the impairment of receivables has been reduced significantly. To further broaden RWS’ appeal as the lifestyle destination, RWS is preparing a five-year strategic roadmap that will significantly enhance its destination appeal in the targeted market segments as well as adopting innovative technology to drive productivity, efficiency and customer experience.
“Higher revenue generated by RWG in 2Q17 was mainly attributable to the higher volume of business from the mass market as well as mid to premium segments of the business, partially offset by a lower hold percentage. The opening of new attractions in SkyPlaza in March 2017 has contributed to higher volume of business from the mass market. However, EBITDA was lower due mainly to higher costs relating to the premium players business as well as higher operating costs incurred for the new facilities opened under Genting Integrated Tourism Plan (GITP).
“The development of the new GITP facilities (Genting Malaysia’s 10-year, RM10 billion regeneration plan) at RWG remains the focus of the Genting Malaysia Group. As the Genting Malaysia Group continues to ramp up pre-opening activities in preparation for the progressive roll out of the remaining attractions and facilities, it remains committed on enhancing service delivery as well as optimizing yield management, database marketing efforts and overall operational efficiencies at RWG. Upon completion, these additions are expected to further enhance guest experience and elevate RWG’s position as the destination of choice in the region;
Profit at RWS grew 148.2% year-on-year to RM918.5 million, but fell 5% at RWG to RM580.9 million. The company saw an 18% decline in revenue from its UK gaming operations to RM411.2 million, partially offset by a 9% increase in the US and Bahamas to RM384.9 million.
Genting added that Genting Singapore “is closely following the progress of the Japan IR Execution Bill, which will pave the way for the formal bidding process of the Japan gaming licences.”
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