Genting Malaysia released its earnings report for the three months ended June 30, 2023, representing a loss of 42.3 million yuan ($9.1 million) from 2022 and a loss of 45.4 million yuan ($9.8 million) in income in the first quarter.
Profit Flow to Resort World Genting:
The increase in profits was mainly attributed to higher profits at the company’s main facility, Resorts World Genting. Profit inflows there were up 17% year-over-year to 1.53 billion yuan ($329 million), with the company’s total revenue up 14% to 2.47 billion yuan ($532 million). However, other facilities at Genting in Egypt, the United Kingdom, the Bahamas, and the United States also saw modest improvements in profits.
Company-wide adjusted EBITDA of 447.9 million MYR ($96.4 million) was down 28% year-over-year and 25% quarter-over-quarter due to lack of investment. However, Resorts World Genting saw adjusted EBITDA of 532.3 million MYR ($115 million), up 16%.
Improvement in performance as foreign visitors return home:
Alpha Aggarwal and Tushar Mohata, analysts at Nomura, noted in their records following the company’s Q2 earnings release: “Malaysia’s earnings improvement saw total visitor numbers rise to 5.4 million from 4.9 million in the first quarter, primarily thanks to the return of foreign visitors. Almost all hotel rooms are now operating on demand, despite no increase in Chinese visitors yet and only 29% of pre-pandemic levels in the second quarter of 23. In the second quarter of 23, the average number of hotel rooms available was ~10,000 and room share was 98%
It added: “While the total number of guests is up 80% year-over-year and 10% quarter-over-quarter, the number of foreign guests is up more than 100% year-over-year and 32% sequentially.”
Profit growth in the first half of 2023:
In the first six months of this year, Genting Malaysia also saw a 22% increase in profit to 4.76 billion yuan ($1.02 billion), while Resorts World Genting saw a 32% increase to 2.96 billion yuan ($637 million). It then had adjusted EBITDA of 1.04 billion yuan ($224 million), while net loss for the year was down from 191.1 million yuan ($40.9 million) in 2022.
Looking ahead, Genting Malaysia said: “The group continues to remain cautiously optimistic about the short-term prospects for the leisure and hospitality industries, and remains positive for the long term.”
Main focus is on promoting tourism growth in RWG:
For Malaysia, the group’s stay was primarily focused on promoting tourism growth, business organization, and successful management of Resorts World Genting (RWG), Malaysia’s top integrated resort destination. In addition, it will use RWG’s services to “facilitate increasing foreign visits” to revenue from the growing number of Malaysian tourists
In response to this issue, the company said, “To further strengthen the resilience of the Group’s business, the Group will optimize returns through database marketing, work with strategic partners in particular in the Midhill region to increase the Group’s asset and product offerings, while strengthening and expanding the Group’s distribution channels. Meanwhile, the Group will continue to invest in the infrastructure of Genting Highlands to improve the safety and well-being of its customers and communities at RWG.”
BY: 릴게임사이트