Genting Malaysia Berhad reported a slight 1% increase in revenue to MYR2.63 billion in the three months to 30 September 2019, the results boosted by higher hold percentage in the mid to premium players segment at flagship IR Resorts World Genting and a 36% increase in the group’s non-gaming business.
However, Adjusted EBITDA declined by 15% to MYR694.4 million with Genting Malaysia pointing to higher casino duties and “a fall in overall volume of business in the gaming segment, primarily due to lower incentives offered to customers.”
The group’s results were very much driven by its Malaysian integrated resort, where revenue increased 5% to MYR1.80 billion but Adjusted EBITDA fell by 16% to MYR537.5 million. Resorts World Genting’s 3Q19 results also included a reversal of provision of MYR101.4 million following the settlement of litigation associated with its outdoor theme park.
Genting Malaysia’s UK properties recorded an increase in volume but 18% fall in revenue to MYR414.7 million due to lower hold in its premium players segment, while Adjusted EBITDA grew by 42% to MYR85.7 million on lower debt-related costs.
In the US and Bahamas, revenue grew slightly to MYR355.8 million but Adjusted EBITDA decreased 22% to MYR55.4 million due to higher payroll and operating expenses at Resorts World New York.
Despite the mixed results, Genting Malaysia moved from a loss of MYR1.51 billion in 3Q18 to a net profit of MYR393.8 million, having recorded an impairment loss in the prior year period on its investment in promissory notes issued by the Mashpee Wampanoag Tribe.