The closure of Resorts World Genting for all but one day saw Genting Malaysia fall to a MYR307 million (US$72.6 million) loss in 3Q21, although the company recorded positive of EBITDA of MYR53.7 million (US$12.7 million) thanks to strong recovery in its US and UK markets.
The result, largely in line with expectations, was also significantly better than the MYR726.2 million (US$171.7 million) loss in the same quarter last year, when its operations all around the globe were impacted by the COVID-19 pandemic.
The narrowed loss came despite revenue for the period declining 42% to MYR826.3 million (US$195.4 million), with the lengthy closure of RWG – which reopened on 30 September – having helped reduce operating costs.
Announcing its 3Q21 results overnight, Genting Malaysia said revenue at RWG fell 99% to just MYR17.7 million (US$4.2 million) with an Adjusted EBITDA loss of MYR164.8 million (US$39.0 million).
Conversely, revenue in the United Kingdom and Egypt more than tripled to MYR406.0 million (US$96.0 million) with Adjusted EBITDA of MYR102.1 million (US$24.1million) while the US and Bahamas saw revenue surge by more than five times year-on-year to MYR364.2 million (US$86.1 million) with Adjusted EBITDA of MYR120.4 million (US$28.4 million).
“These improvements were predominantly due to the strong operating performance registered at Resorts World New York City (RWNYC) since the full lifting of COVID-19 restrictions in June 2021, with the property achieving gross gaming revenue surpassing pre-pandemic levels,” the company said.
In a note, Nomura analysts Tushar Mohata and Alpa Aggarwal said they remain positive on Genting Malaysia with investors “likely to look beyond the 3Q21 blip towards a brighter 4Q21 and FY22, led by the opening of the resort, new attractions and gradual international border reopening for Malaysia.
“Since reopening and lifting of restrictions in October 2021, the Malaysian resort (RWG) is seeing strong recovery and trends are encouraging especially on weekends. For the much-awaited Genting SkyWorlds theme park launch, management appears to be targeting end-2021. Note that the theme park’s attractions are already open for preview for employees and invited guests to gather feedback to iron out any operational kinks.”
Genting Malaysia said the government’s “introduction of the Twelfth Malaysia Plan, with the tourism industry as one of the key focus areas, will augur well for the Group as a leading player in the leisure and hospitality sector in Malaysia and the region.”
RelatedPosts
