Genting Berhad has promised to focus on building its Las Vegas mass market and convention business after its flagship Las Vegas Strip resort, Resorts World Las Vegas (RWLV), saw only minimal EBITDA improvement in the three months to 31 March 2023.
The company published its financial results for Q1 overnight, revealing during its subsequent earnings call that revenue of US$218 million at RWLV was down on the US$227 million reported in 4Q22, although EBITDA climbed from US$47 million to US$50 million. The gaming/non-gaming revenue mix came in at 25% and 75% respectively.
In a note, Nomura analysts Tushar Mohata and Alpa Aggarwal said that, “In order to grow EBITDA from current ~US$50 million per quarter run-rate, management intends to focus on building mass market business (to build customer database) and convention business on weekdays.”
They also explained that management is working on a refinancing plan for its RWLV-related borrowings to extend the weighted average maturity date of those borrowings.
Meanwhile, Genting Bhd hailed another quarter of record EBITDA and EBITDA margin for its Las Vegas property, stating that the better performance was driven by the “continued growth of convention business and strong performance in casino, food and beverage, and hotel divisions.”
Hotel occupancy and Average Daily Rate in 1Q23 were 89.8% and US$280 respectively, up from 70.8% and US$229 a year earlier.
The company said RWLV will have its highest mix of convention base room nights in 2023, while upcoming events such as the Las Vegas Formula 1 Grand Prix and NFL Pro Bowl are expected to further drive visitation to Las Vegas.
“As international travel continues to resume and with strong demand for domestic travel to Las Vegas, RWLV remains focused on growth opportunities, including ongoing efforts to build RWLV’s database for casino and resort marketing,” it said.
Group-wide, Genting Bhd reported profit of MYR295.2 million (US$63.8 million) in Q1, reversing an MYR173.5 million (US$37.5 million) loss in 1Q22 thanks to a 43% increase in revenue to MYR4.78 billion (US$1.03 billion). Adjusted EBITDA grew 41% to MYR1.83 billion (US$396 million).
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