Resorts World Las Vegas, the US flagship of Malaysian gaming giant Genting Berhad, reported its worst quarterly results in the past two years in 3Q24, with revenue falling to US$177 million from US$218 million in Q2, and EBITDA to US$16 million from US$50 million.
In a filing, Genting said the property had been impacted by “an abnormally hot summer in Las Vegas and economic uncertainty in an election year,” with hotel occupancy down from 91.1% a year earlier to 85.1%. Average room rates also fell from US$246 in 3Q23 to US$244.
It did, however, note that average room rates year-to-date of US$267 are higher than FY23 rates of US$256. Genting also expressed confidence in RWLV’s prospects, stating, “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.”
In a research note, Nomura analysts Tushar Mohata and Alpa Aggarwal said a recent complaint by the Nevada regulator against RWLV for allowing individuals with suspected or proven ties to illegal activities to gamble on property will likely remain an overhang until a regulatory action is decided.
Genting revealed in its 3Q24 earnings call that the due date to reply to the complaint has been extended until 9 December 2024, with discussions ongoing.
Group-wide, Genting Bhd reported Thursday a 5% sequential decline in revenue to MYR6.5 billion (US$1.46 billion) and a 15% decline in Adjusted EBITDA to MYR1.86 billion (US$418 million) on declines in Malaysia, Singapore and the US, partially offset by growth in its UK and Egypt resort segment.
