Genting Berhad’s Revenue Doubles To RM4.21 Billion Turns Profitable For The Quarter

  • Genting Berhad today announced its financial results for the first quarter with revenue coming at RM4.21 billion a substantial increase of 87% compared with the previous year’s corresponding quarter revenue of RM2.25 billion with the Leisure & Hospitality Division being the main contributor to the higher revenue. From a loss before tax of RM484 million, the group turned around and is now in the black with profits coming in at RM12 million.
  • Consequently, adjusted earnings before interest, tax, depreciation, and amortisation of RM1.3 billion, more than doubled from 1Q21. Revenue from Resorts World Sentosa improved however EBITDA dipped mainly due to the rise in utility expenses and the expiry of COVID-19-related Government support measures. Revenue from Resorts World Genting improved substantially mainly due to higher business volume from the gaming and non-gaming segments as a result of the easing of travel restrictions during 1Q22. Consequently, RWG recorded EBITDA in 1Q22 compared with an adjusted loss before interest, tax, depreciation and amortisation in 1Q21 mainly due to the higher revenue and higher debts recovery

The leisure and hospitality business in the United Kingdom and Egypt recorded higher revenue in 1Q22 compared with 1Q21 as the latter period had been impacted by the nationwide lockdown in the UK with effect from early January 2021 as a result of COVID-19 pandemic, when all the land-based casinos and resort operations had been temporarily closed. Genting Malaysia Berhad Group’s land-based casinos in the UK have re-opened since mid-May 2021. EBITDA was recorded
compared with LBITDA in 1Q21 primarily due to higher revenue partially offset by higher payroll and related costs following the resumption of its operations since mid-May 2021.

Higher revenue and EBITDA from the leisure and hospitality business in the United States of America and the Bahamas were mainly due to the strong operating performance of Resorts World New York City since the full lifting of COVID-19 restrictions in June 2021. RWNYC operated with limited operating hours in compliance with a government directive in 1Q21. Resorts World Las Vegas revenue and EBITDA in 1Q22 were affected by the surge of the COVID-19 Omicron variant which significantly impacted group and leisure travel to RWLV.

However, rebounding travel trends in the Spring and Summer of 2022, on account of loosening COVID-19 restrictions, indicated strong demand for RWLV’s properties and services. 1Q22 hotel occupancy started at 54% in January and finished at 85% in March.

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