Genting Berhad has reaffirmed its intention to reposition the company’s flagship Resorts World Genting (RWG) and Resorts World Sentosa (RWS) properties as mass market lifestyle brands after both recorded strong results in the mass segment in 3Q17.
Group-wide revenue for the three months to 30 September 2017 grew 8% to RM5.04 billion, (US$1.23 billion) with RWS up 13% to RM1.97 billion (US$479.5 million) thanks to growth across the board including “expanded premium mass business from the region and strong year-on-year growth in electronic gaming machines performance.”
RWG saw revenue fall 7% to RM1.35 billion (US$328.6 million) as a result of lower hold in the mid to premium segments, but reported an increase in the mass market segment as overall business volume grew.
Notably, Genting Malaysia Berhad – the group’s 49.4% owned subsidiary – attributed the opening of new attractions at SkyPlaza in March as significantly contributing to the increase in revenue from the mass market. SkyPlaza forms part of the company’s Genting Integrated Tourism Plan (GITP) – a RM10.4 billion rejuvenating facelift of the ageing property.
“Genting Malaysia Berhad remains focused on the development of GITP at RWG as it prepares to roll out the much anticipated 20th Century Fox World Theme Park as well as the new indoor theme park next year,” it said. “With the recent additions under GITP that complement the existing attractions at RWG, the Genting Malaysia Group will focus on optimizing overall operational efficiencies and driving revenue growth.”
Genting Berhad added that it was also targeting the tourism market in Singapore despite impressive numbers in VIP in 3Q17.
“RWS is committed to ensuring its integrated resort is well positioned to cater to evolving needs of vacation destination seekers from its key regional source markets,” the company said. “Looking ahead, its re-positioning as a lifestyle brand will broaden its appeal to attract premium customers.
“Scheduled for a soft opening during the upcoming Christmas holiday season, Asia’s only maritime silk-road theme attraction, Maritime Experiential Museum, will unveil brand new exhibits and entertainment content in immersive multi-media settings. Food connoisseurs can also look forward to the opening of a fine dining Japanese restaurant, Teppan by Yonemura, by the chef-owner of Michelin-starred Japanese restaurants, Masayoshi Yonemura from Kyoto.”
Genting Berhad’s profit for the quarter declined 43% to RM818.8 million (US$ 199.1 million) due to lower group EBITDA and a reversal of previously recognized impairment losses in 3Q16 compared with impairment losses in 3Q17, mainly in respect to UK casino licences.
However, revenue from its UK business soared by 36% to RM516.4 million with the US and Bahamas up 13% to RM363.2 million.
