Resorts operator Genting Malaysia narrows losses in Q2

KUALA LUMPUR (Bernama) -- Genting Malaysia Bhd’s (GENM) net loss for the second quarter ended June 30, 2021 (Q2 2021) narrowed to RM348.11 million from RM900.42 million net loss posted in the same quarter last year.

Revenue jumped to RM817.87 million from RM114.91 million previously mainly due to higher revenue recorded from the leisure and hospitality businesses in the United States (US) and Bahamas, Malaysia, United Kingdom (UK) and Egypt, GENM said in a filing with Bursa Malaysia today.

It said higher revenue from the leisure and hospitality businesses in the US and Bahamas by RM384.5 million, mainly due to better performance from Resorts World Casino New York City (RWNYC) as the property recommenced its business since September 2020.

In Malaysia, it registered higher revenue from the leisure and hospitality business by RM155.7 million mainly due to an increase in the overall volume of business from gaming and non-gaming segments as a result of the easing of operational and travel restrictions.

While GENM collected higher revenue from the leisure and hospitality businesses in the UK and Egypt by RM152.1 million, largely due to the group’s land-based casinos in the UK which have re-opened since mid-May 2021 compared to a temporary suspension of the land-based casino operations throughout 2Q 2020, it added.

On prospects, GENM said it maintains cautious stance on the near-term prospects of the leisure and hospitality industry.

"While the group remains focused on implementing various initiatives to create a stronger platform for sustainable long-term growth and profitability, it will continue to closely monitor its cost base as it navigates the challenging operating and business environment in Malaysia.

"The timely completion of Genting SkyWorlds continues to be a key focus,” it said.

In the UK, the group is encouraged by the recovery momentum seen since the resumption of its land-based casinos on May 17, 2021, hence it will continue to ramp up its operations to drive revenue and business volumes as COVID-19 restrictions are relaxed across the region, GENM added.

In the US, RWNYC and Resorts World Catskills (RWC) continue to record strong rebound in demand with the easing of pandemic-related restrictions in the New York State.

"The group will place increased focus on developing its strong local market exposure by leveraging synergies between RWNYC and RWC to drive business volumes and improve the overall margins of its US operations.

"Meanwhile, the group’s new hotel, Hyatt Regency JFK Airport at Resorts World New York, which opened on Aug 6, 2021 will also be a catalyst for growth,” it said.

TAGS: GENM, results, Q2 2021, leisure and hospitality businesses
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