Resorts World Genting and Genting Malaysia Berhad have reported robust financial performances in the first quarter of 2024, with substantial revenue growth and promising outlooks despite market challenges.
Resorts World Genting’s impressive growth:
Resorts World Genting witnessed a remarkable 25 percent increase in revenue, reaching RM1.75 billion ($372.2 million) in Q1. This surge in revenue contributed significantly to the overall positive performance of Genting Malaysia Berhad. Notably, the period saw a notable turnaround in net profit, totaling RM36.7 million ($7.8 million), marking a significant improvement from the loss recorded in the same quarter last year.
Genting Malaysia Berhad’s leisure and hospitality operations reported a commendable 22 percent increase in revenues, totaling MYR2.71 billion (US$577 million) in Q1 2024. This growth was evident across all segments, including Malaysia, the UK and Egypt, and the US and Bahamas. Resorts World Genting, the company’s flagship in Malaysia, led the charge with a 25 percent year-on-year revenue increase to MYR1.75 billion (US$373 million).
The company’s Malaysian segment witnessed a 34 percent rise in adjusted EBITDA, contributing to a 10 percent overall increase in the group’s EBITDA, totaling RM654.1 million ($139 million). Profit before tax more than doubled on a yearly basis, reaching RM115.9 million ($24.64 million).
Looking ahead, Genting Malaysia Berhad remains optimistic, with ongoing investments in new products and experiences underway in Malaysia. According to Asia Gaming Brief, in the US, the company is closely monitoring developments surrounding the New York Gaming Facility Board’s Request for Application for up to three commercial casinos in New York State.
Challenges and mitigation strategies:
Despite the positive outlook, Genting Malaysia Berhad acknowledges challenges, including potential competition in the US region. However, the company remains steadfast in its commitment to driving growth and profitability.
Analysts Tushar Muhata and Alpa Aggarwal noted a quarter-on-quarter increase in net income, driven by unexpected EBITDA margin improvement in Malaysia and revenue growth in the US. However, they anticipate EBITDA margins at Resorts World Genting to compress throughout 2024 due to cost normalization and other factors.
Inside Asian Gaming reports that Genting Malaysia Berhad remains cautious about the near-term prospects of the leisure and hospitality industry but maintains a positive outlook in the longer term. The company expects the regional gaming market to continue improving, supported by optimistic international tourism outlooks and ongoing tourism-related measures.
Resorts World Genting and Genting Malaysia Berhad’s impressive Q1 performances reflect their resilience and strategic initiatives amid market challenges, positioning them for sustained growth in the evolving landscape of the leisure and hospitality industry.
