Genting Malaysia’s profit doubles in Q2 2024???

Jenny Ortiz August 30, 2024

Share it :

Genting Malaysia’s profit doubles in Q2 2024???

Genting Malaysia Berhad, a global casino operator, reported earnings growth for the second quarter of 2024. The company’s net profit soared to MYR62.7 million (€13.1 million), marking a 107.1 percent increase compared to the same period last year.

This substantial growth also represents a 70.9 percent rise from the first quarter’s profit of MYR36.7 million (€7.7 million). The company’s first-half profit for 2024 stood at nearly MYR99.4 million (€20.8 million), a sharp turnaround from a MYR15.1 million (€3.15 million) loss reported in the first half of 2023.

Interim dividend declared amid positive results??

Considering these encouraging results, Genting Malaysia announced an interim single-tier dividend of MYR0.06 per ordinary share, emphasising its commitment to providing sustainable returns to its shareholders. The interim dividend is scheduled to be paid on October 7, 2024, per the company’s filing to Bursa Malaysia.??

Revenue growth across key markets??

For the three months ending June 30, 2024, Genting Malaysia’s revenue reached almost MYR2.67 billion (€558.7 million), a 7.9 percent increase from the same period in 2023, despite a slight sequential decline of 3.5 percent from the first quarter. The company’s flagship property, Resorts World Genting in Malaysia, generated MYR1.62 billion (€339 million) in revenue, accounting for 60.5 percent of the group’s total revenue and reflecting a 5.3 percent year-on-year increase. This growth was driven by higher business volumes in both the gaming and non-gaming segments.

In addition to its Malaysian operations, Genting Malaysia experienced strong performance in its international markets. Revenue from its UK and Egypt segment surged by 20.1 percent year-on-year to MYR468.8 million (€98.1 million), while the US and Bahamas segment saw an 11 percent increase, totalling MYR527.8 million (€110.4 million). Resorts World New York City and Resorts World Bimini in the Bahamas were noted for their improved operating performance, which contributed to these gains.??

EBITDA growth and strategic focus??

Genting Malaysia’s group-wide adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) rose 72 percent year-on-year to MYR770.4 million (€161.2 million). This robust performance was underpinned by foreign exchange gains and increased business volume. The leisure and hospitality segment contributed MYR766.3 million (€160.3 million) to the adjusted EBITDA, showing a 3.9 percent improvement from the previous year.

Positive outlook despite challenges??

Despite higher operating expenses affecting certain segments, such as Resorts World Genting, Genting Malaysia remains optimistic about its near-term prospects. The company highlighted ongoing investments in new products, lifestyle experiences, and digital platform enhancements to capitalise on the recovery in regional travel. Additionally, Genting Malaysia is focusing on expanding strategic partnerships to adapt to evolving customer preferences.??

In the UK, the company plans to enhance business resilience by reorganising operations for greater efficiency. While in the US, Genting is set to boost marketing initiatives to attract more visitors and broaden its customer base. The group is also closely monitoring developments regarding New York State’s plans to approve up to three new commercial casinos, which could impact its market positioning.?