Genting Malaysia reported a 75% year-on-year increase in Adjusted EBITDA to MYR1.31 billion (US$295 million) and a 120% increase in profit before tax of MYR535.8 million (US$120 million) in 3Q24, with the company citing unrealized foreign exchange translation gains, as well as improved performance in the UK and lower losses from its US subsidiary Empire Resorts.
However, Adjusted EBITDA at Malaysian flagship Resorts World Genting (RWG) declined by 13% to MYR493.4 million (US$111 million) on higher payroll and casino operating costs.
Group-wide revenue climbed 1% year-on-year to MYR2.75 billion (US$618 million), of which RWG contributed MYR1.68 billion (US$378 million) – essentially flat year-on-year. The company noted that its Adjusted EBITDA margin was 29% in Q3 compared with 34% a year ago, although Nomura analysts said in a note that management is confident it will achieve improved margins moving forward.
Visitation to RWG was up 12% year-on-year and 3% quarter-on-quarter, while hotel occupancy was at 99% despite a 5% decline in domestic guests. This, Nomura noted, was offset by a 13% increase in foreign guests including a better than 100% improvement in guests from China.
Outside of Malaysia, the company reported a 9% year-on-year increase in revenue to MYR538.0 million (US$121 million) and a 5% increase in Adjusted EBITDA to MYR104.0 million (US$23.4 million) – largely attributable to a higher volume of business registered across the group’s estate.
In the US and the Bahamas, revenue was flat at MYR472.2 million (US$106 million). While Adjusted EBITDA fell by 8% to MYR124.2 million (US$27.9 million), mainly due to higher operating and payroll related expenses.
For the first nine months of 2024 combined, group-wide revenue is up 10% to MYR8.18 billion (US$1.84 billion) including a 9% increase to MYR5.04 billion (US$1.13 billion) at RWG. Adjusted EBITDA for the period is up 53% to MYR2.73 billion (US$614 million).
Genting Malaysia said it is “cautiously optimistic of the near-term prospects of the leisure and hospitality industry and remains positive in the longer-term.
“In Malaysia, the group remains focused on driving sustainable growth by leveraging yield management systems and database analytics to optimise performance across its key business segments,” it said.
“The Group will continue refining its marketing strategies to grow visitations, whilst staying committed to delivering exceptional value and choice that meet the diverse preferences of its customers. Furthermore, the Group will continue to invest in innovative products and experiences, including new ecotourism attractions, which are expected to be rolled out from 2025.”
