GENTING MALAYSIA REVENUE AT US$494MLN IN 1Q, NARROWS LOSS

Genting Malaysia revenue at US$494mln in 1Q, narrows loss

Genting Malaysia revenue at US$494mln in 1Q, narrows loss

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International casino operator Genting Malaysia Bhd recorded total first-quarter revenue of just above MYR2.28 billion (US$493.7 million), up 32.7 percent from the prior-year period. Judged sequentially, group-wide revenue was down 6.2 percent, according to a Thursday filing to Bursa Malaysia.

The group reported first-quarter adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of MYR592.9 million, an increase respectively of 43.1 percent year-on-year, and 25.4 percent quarter-on-quarter.

The company posted a net loss attributable to shareholders of nearly MYR27.4 million for the first quarter of 2023. The result compared to a net loss of MYR126.5 million a year earlier, and a MYR394.0-million loss in the preceding quarter.

Genting Malaysia operates Resorts World Genting, Malaysia’s only licensed casino property (pictured in a file photo). The group also runs casinos in the United States – via associated businesses – and in the Bahamas, the United Kingdom, and Egypt.

The company did not recommend the payment of a dividend for the three months to March 31.

In its Malaysia operation – mainly driven by the country’s monopoly casino business at Resorts World Genting – revenue from leisure and hospitality operations rose 52.5 percent year-on-year, to MYR1.40 billion. Such revenue was however down 11.9 percent quarter-on-quarter.

The Malaysia operation’s quarterly adjusted EBITDA was MYR436.5 million, up 66.0 percent from a year earlier, but down 6.6 percent sequentially.

In Thursday’s release, Genting Malaysia said Resorts World Genting had seen “overall higher volume of business” following the lifting of pandemic-related restrictions and the reopening of that nation’s borders from April 1, 2022.

“As a result of the ramp up of the group’s operations, the group incurred higher operating expenses in first-quarter 2023,” it added.

Genting Malaysia said it continued to be “cautiously optimistic” 온라인카지노사이트 on the near-term outlook of the leisure and hospitality industry.

In Malaysia, the casino firm stated it remained “focused on enhancing yields” at Resorts World Genting “by intensifying its database marketing efforts, whilst improving overall operational efficiencies at the resort”.

It added: “Effective cost management will continue to be emphasised as part of the group’s ongoing efforts to augment its resilience amid a fluid operating environment.”

Genting Malaysia also said it was committed to “exploring opportunities that will strengthen its competitive position”, including “developments surrounding the New York Gaming Facility Board’s request for application to solicit proposals for up to three commercial casinos in New York state.”

The New York State Gaming Commission in January launched a request-for-applications process for three downstate New York gaming licences.

A number of investment analysts has suggested that Genting group could be a front runner there. It already runs an electronic games facility called Resorts World Casino New York City; and has investment in Empire Resorts Inc, which runs the full-service casino Resorts World Catskills, in upstate New York.

Earlier this month, Genting Malaysia announced that it would dispose of its full interest in a wholly-owned subsidiary that owns some parcels of land in Miami, Florida in the United States, instead of just selling the plots owned by that subsidiary, as previously announced. The casino investor is to sell Resorts World Miami LLC, which owns four Miami land parcels, for a total cash consideration of just below US$1.23 billion.

The global casino operator has said that US$1.0 billion of the transaction proceeds would be used to fund “future investments, as and when they arise”.

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