Genting Berhad’s US flagship Resorts World Las Vegas (RWLV) has cited an ever-improving calendar of events for its record performance in 3Q23, with revenue increasing by 11.7% quarter-on-quarter to US$230 million and EBITDA by 52.9% to US$52 million.
In its results announcement for the three months to 30 September 2023, Genting said hotel occupancy at RWLV had climbed to 90.4% for the quarter, compared with 82.4% for the first nine months of 2023 combined, while the average daily rate of US$256 compared with US$233 million year-to-date.
RWLV “benefited from a mix of concert headliners and events, including the NFL Super Bowl and college basketball tournaments, paired with a robust convention quarter which drove strong visitation to RWLV’s property. The stronger USD also contributed to increased revenue and EBITDA,” Genting explained.
Despite the strong showing, Nomura analysts Tushar Mohata and Alpa Aggarwal said RWLV management “continues to strive for yield improvement, and mentioned that the Formula 1 weekend on 18 and 19 November recorded strong demand,” which will show up in 4Q23 results.
“We also asked management about risks from the launch of the new Fontainebleau Las Vegas property in mid-Dec, which will have ~3,600 rooms and will be located close to RWLV near the north-end of Las Vegas strip,” Nomura wrote.
“Management acknowledged competition risks but is hopeful that the new resort will attract more traffic to the north-end of the strip.”
In its 3Q23 results announcement, Genting said RWLV will have its highest mix of convention base room nights in 2023, while future projects such as additional dining, entertainment and retail offerings, and new performances at the Resorts World Theatre, are expected to drive significant foot traffic for the remainder of 2023 and beyond.
Group-wide, Genting Berhad reported a 20% year-on-year increase in revenues to MYR7.37 billion (US$1.57 billion) in 3Q23 and a 33% increase in EBITDA to MYR2.73 billion (US$583 million), driven by the strong performances of its Singapore property Resorts World Sentosa and Malaysia’s Resorts World Genting.
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