Genting Malaysia Berhad has reported a MYR469 million (US$106 million) loss in the three months to 31 December 2022, with a raft of one-off expense items overshadowing a 29% gain in group-wide revenue for the period to MYR2.43 billion (US$548 million).
Releasing its 4Q22 results overnight, the company revealed a 65% increase in revenue at its Malaysian flagship, Resorts World Genting (RWG), to MYR1.59 billion (US$359 million) – helping push group-wide EBITDA to MYR467.3 million (US$105 million), up 30% year-on-year.
“These improvements were largely attributable to the overall higher volume of business registered at RWG, as the resort’s improved operating performance was driven by the continued ramp up of its business following the lifting of COVID-19 related restrictions, and the reopening of national borders in Malaysia from 1 April 2022,” it said. “Additionally, the launch of Genting SkyWorlds Theme Park in February 2022 had contributed to greater non-gaming revenue in the period.
However, “As a result of the ramp up of its operations, the Group incurred higher operating and payroll related expenses in 4Q22 as compared to the same period last year.”
In a note, Nomura analysts Tushar Mohata and Alpa Aggarwal said they were also “negatively surprised” by several items that came in below the company’s reported EBITDA, including “FX loss, higher losses from associates (Resorts World Catskills), higher depreciation (opening of Skyworlds and hotel in New York), higher finance expense (interest costs can no longer be capitalized) and higher tax charge.”
Revenue at the company’s US and Bahamas properties grew 31% year-on-year to MYR459.7 million (US$104 million) while UK and Egypt declined by 23% to MYR335.1 million (US$76 million).
For FY22, group-wide revenue more than doubled to MYR8.60 billion (US$1.94 billion) with Adjusted EBITDA almost tripling to MYR2.12 billion (US$478 million). Net loss for the year narrowed by 36% to MYR667.4 million (US$151 million).
“These improvements were largely driven by the recovery of the Group’s operations in Malaysia,” the company said, adding that it expects the recovery trend to continue strongly into the rest of the year.
“The Group continues to be cautiously optimistic on the near-term outlook of the leisure and hospitality industry and remains positive in the longer-term.
“In Malaysia, the Group will continue to focus on ramping up its operations at RWG to pre-pandemic capacity whilst building on its service delivery and product offerings to enhance the quality of guest experience. The Group will also leverage its quality assets to grow key business segments and attract incremental foreign visitation to the resort in view of the anticipated improvement in the pace of recovery in leisure travel following the recent relaxation of travel restrictions in the wider region.
“Notwithstanding, the Group will continue to remain agile in responding to the fluid business environment with continued focus on operational efficiencies and cost management to deliver a sustainable performance.”
Genting Malaysia has declared a final single-tier dividend of 9.0 sen per ordinary share for FY22, 50% higher than the interim dividend of 6.0 sen per ordinary share declared previously.
RelatedPosts
