Genting Malaysia Berhad reported improved results in the three months to 30 June 2019, with revenue, EBITDA and profit all creeping north on the back of the contribution from its Malaysian integrated resort, Resorts World Genting (RWG).
Group revenue and net profit for the period both climbed 7% to MYR2.60 billion (US$616.8 million) and MYR403.1 million (US$95.6 million) respectively, while Adjusted EBITDA registered marginal improvement at MYR711.5 million including a 53% increase in Adjusted EBITDA contribution from the company’s UK and Egypt properties to MYR45.1 million.
At RWG, the group’s flagship property located outside Kuala Lumpur, revenue grew 10% in 2Q19 to MYR1.76 billion (US$417.5 million) although Adjusted EBITDA remained flat at MYR540 million (US$128.1 million).
Genting Malaysia said it saw an overall decline in gaming volume for the quarter after reducing the incentives it offered customers due to cost rationalization initiatives, but results were boosted by higher hold in the mid-to-premium players segment. The group also recorded a reversal of provision for contract termination related costs of MYR60.2 million in relation to the outdoor theme park at RWG after settling a dispute with Twenty-First Century Fox Inc and Walt Disney Co.
Genting Malaysia’s UK and Egypt operations reported a 4% decline in revenue to MYR420.1 million, mainly due to lower contribution from the group’s interactive business, while the US and Bahamas enjoyed a strong 10% increase to MYR378.1 million. The improvement was credited to both gain on foreign exchange and higher business volume at Resorts World Casino New York City.
Looking ahead, the company said it is now working on the development of its outdoor theme park following the resolution of its legal dispute, with an opening date to be confirmed in the coming months.
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