Genting Malaysia Berhad saw its profit more than double to MYR62.8 million (US$14.6 million) for the three months to 30 June 2024, aided by increases in revenue in all three of its Malaysia, US and UK gaming markets.
The group reported an 8% year-on-year increase in total revenue to MYR2.67 billion (US$619 million) in 2Q24 – largely in line with Q1 – which included a 5% increase in revenue to MYR1.62 billion (US$376 million) at flagship Resorts World Genting outside of Kuala Lumpur. The company said the increase was due to a higher volume of business in the property’s gaming and non-gaming segments, although Adjusted EBITDA was 1% lower year-on-year at MYR524.8 million (US$122 million) on higher operating expenses.
Revenue in the UK and Egypt segment grew by 20% year-on-year to MYR468.8 million (US$109 million) and in the US and Bahamas by 11% to MYR527.8 million (US$123 million).
Group-wide Adjusted EBITDA grew by 72% year-on-year to MYR770.4 million (US$179 million), aided by net foreign exchange translation gains.
For the first six months of 2024 combined, group-wide revenues grew by 14% to MYR5.43 billion (US$1.26 billion), supported by a 15% increase in revenues at RWG to MYR3.36 billion (US$779 million).
“These improvements were mainly driven by the higher volume of business registered at RWG as travel demand from the wider region continues to grow,” Genting Malaysia said. “Despite an increase in operating expenses, the Group maintained its Adjusted EBITDA margin at 33% from 1H23.”
In a note, Nomura analysts Tushar Mohata and Alpa Aggarwal said Genting Malaysia’s Q2 results were encouraging.
“Considering 2Q24 is seasonally weak for gaming volumes, and also saw the full quarter impact of 2pp Sales and Service Tax hike since March and full quarter impact of the closure of two older casinos, we think the results were overall a positive surprise,” they wrote.
The company itself added that it remains “cautiously optimistic” of the near-term prospects of the leisure and hospitality industry and positive in the longer-term.
“In Malaysia, the Group remains focused on leveraging its integrated resort offerings to capitalise on the ongoing recovery in regional travel,” it said.
“The Group’s investment in new and refreshed products and lifestyle experiences is part of the Group’s ongoing strategy to strengthen its position as a premier tourism destination and drive further growth. Additionally, the Group is enhancing its digital platforms and expanding strategic partnerships to better meet evolving customer needs and preferences.
“The Group remains committed to maintaining cost discipline as it navigates challenges in the operating environment.”
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