Genting Malaysia Berhad has reported a 12% year-on-year increase in revenue to MYR2.72 billion (US$573 million) and a 78% increase in Adjusted EBITDA to MYR843.9 million (US$178 million) in the three months to 31 December 2023, mainly attributable to higher business volumes at its flagship Malaysian IR, Resorts World Genting (RWG), the company said overnight.
In a filing, the company revealed revenues at RWG of MYR1.80 billion (US$379 million), up 13% year-on-year, with Adjusted EBITDA of MYR529.5 million (US$112 million).
In the United Kingdom (UK) and Egypt, the group’s revenue grew by 28% to MYR429.7 million (US$90.5 million), also driven by higher volumes of business, while Adjusted EBITDA was 50% higher at MYR90.2 million (US$19.0 million).
And in the USA and the Bahamas, revenue increased by 1% to MYR465.7 million (US$98.1 million), with higher contributions from Resorts World New York City and Resorts World Bimini which the company said registered an improved operating performance driven by a higher number of cruise calls and visitation to the resort.
Group-wide, net profit in 4Q23 was MYR217.6 million (US$45.8 million) reversing a net loss of MYR469.0 million (US$98.8 million) from a year earlier.
In FY23, total group revenue increased by 18% to MYR10.19 billion (US$2.15 billion) while adjusted EBITDA grew by 24% to MYR2.63 billion (US$554 million). Net profit of MYR360.8 million (US$76.0 million) compared to a net loss of MYR667.4 million (US$141 million) in FY22.
In a note, Nomura analysts noted that Adjusted EBITDA at RWG was down 6% quarter-on-quarter due to higher marketing expenses during year-end holiday season. Management also pointed out that there will be a 2pp increase in sales and service tax starting from March 2024 which will also impact revenues/margins for Malaysia operations going forward.
Positively, occupancy at the hotel was 93% with visitation up 15% year-on-year for both local and foreign guests. Foreign guests visitation growth was driven by China, up more than 100% year-on-year, and Indonesia, up 14%.
“In Malaysia, the expected growth in regional tourism and domestic private consumption augurs well for the group’s strategy on increasing visitation and customer spend at RWG,” Genting Malaysia said.
“Though competitive pressures remain, the Group will continue to focus on innovative marketing initiatives to expand customer reach whilst capitalizing on value offerings to grow key business segments. Meanwhile, continued investments in infrastructure enhancements at Genting Highlands will be made to ensure the safety of visitors and the surrounding community.”
RelatedPosts
