Genting Malaysia Bhd returned to profitability in the three months to 4Q21, buoyed by a resurgence in business volumes in all three of its key global gaming markets.
The company reported a net profit of MYR124.0 million (US$29.5 million) in 4Q21, reversing an MYR258.2 million (US$61.5 million) loss from a year earlier thanks to an 81% year-on-year increase in group-wide revenue to MYR1.89 billion (US$450 million). Adjusted EBITDA grew 333% to MYR738.1 million (US$176 million).
The 4Q21 results included a 49% year-on-year increase in revenue to MYR961.9 million (US$229 million) at Malaysia’s Resorts World Genting, while Adjusted EBITDA more than doubled to MYR358.1 million (US$85 million), after the integrated resort reopened on 30 September 2021. The full lifting of interstate travel restrictions from 11 October further aided demand recovery at the resort, Genting Malaysia said.
In the UK and Egypt, revenue almost quadrupled to MYR433.2 million (US$103 million) with Adjusted EBITDA of MYR178.8 million (US$42.5 million) following the easing of COVID-19 restrictions across the region.
In the United States and Bahamas, revenue increased by 43% to MYR350.7 million (US$83.5 million), mainly attributable to a strong rebound in demand at Resorts World New York City (RWNYC). With GGR returning to pre-COVID-19 levels, Adjusted EBITDA from the segment improved by 65% to MYR116.7 million (US$28 million) in 4Q21.
For FY21, Genting Malaysia saw revenue fall 8% to MYR4.16 billion (US$990 million) although Adjusted EBITDA more than doubled to MYR727.0 million (US$173 million). Net loss narrowed from MYR2.36 billion (US$562 million) in 2020 to MYR1.15 billion (US$274 million) in 2021.
Providing its outlook for the year ahead, the company said that although the prospects for international tourism are gradually improving, “uncertainties surrounding COVID-19 developments will continue to pose headwinds to global travel. Nevertheless, higher vaccination rates worldwide and the introduction of vaccine passports in certain countries will support the recovery of the tourism, leisure and hospitality industries, including the regional gaming sector.
Against this backdrop, the Group remains cautiously optimistic on the near-term prospects of the leisure and hospitality industry but is wary of the increased spread of COVID-19 variants.”