Genting Berhad’s US flagship, Resorts World Las Vegas (RWLV), generated revenue of US$214 million in the three months to 31 March 2024, down 1.8% year-on-year and down 11.2% quarter-on-quarter.
It also reported a 23.0% year-on-year and 31.9% sequential decline in EBITDA to US$39.5 million, with the company citing event cancellations and lower win percentage according to analysts from Nomura.
While hotel occupancy was slightly improved quarter-on-quarter at 89%, average daily room (ADR) rate fell from US$319 in 4Q23 to US$298.
“We think there is some impact on ADR after the December opening of the Fontainebleau near RWLV,” the analysts wrote in a note.
Nevertheless, Genting Berhad said the result showed “positive movement towards future targeted projections. Future projects such as additional dining, entertainment, retail offerings and new performances at the Resorts World Theatre are expected to drive significant foot traffic in the remainder of 2024 and beyond.
“RWLV remains focused on growth opportunities, including ongoing efforts to expand RWLV’s database for casino and resort marketing to yield high net worth customers and drive repeat visitation, grow with established and new convention groups to deliver high margin group business and invest in new dining concepts, entertainment and retail offerings to drive operating leverage.”
Group-wide, Genting Berhad reported a 36% year-on-year increase in revenues from its leisure and hospitality segment to MYR6.48 billion (US$1.38 billion) and a 40% increase in Adjusted EBITDA to MYR2.57 billion (US$547 million).
The company’s operations include integrated resorts in Malaysia, Singapore and Las Vegas as well as casinos in New York, the UK and Egypt.
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