KUALA LUMPUR: Genting Malaysia Bhd’s net profit soared to RM177.41 million in the third quarter ended Sept 30, 2023 (3Q FY2023) from RM11.38 million boosted by recovery momentum in the leisure and hospitality industry.
Revenue jumped to RM2.71 billion versus RM2.27 billion supported by the leisure and hospitality businesses both domestically and internationally.
In a filing with Bursa Malaysia today, it said the leisure and hospitality business in Malaysia saw higher revenue of RM285.4 million compared to 3Q 2022, mainly due to a higher business volume registered by Resorts World Genting’s (RWG) gaming and non-gaming segments.
The leisure and hospitality businesses’ revenue in the United Kingdom and Egypt grew from RM393.9 million to RM494.9 million due to higher volume of business, while the United States (US) and Bahamas revenue inched up by RM48.8 million due to the higher contributions from Resorts World New York City (RWNYC) and the improved operating performance of Resorts World Bimini (RW Bimini).
RW Bimini’s performance was supported by the relaxation on travel restriction since June 2022 leading to higher number of cruise calls and visitation at the resort.
For the nine-month period, net profit turnaround to a net profit of RM197.15 million from a net loss of RM126 million supported by higher revenue of RM7.47 billion from RM6.17 billion previously.
Going forward, the group remained cautious of the near-term outlook of the leisure and hospitality industry but is positive in the longer term.
It expected the positive outlook for international tourism to be sustained, although macroeconomic concerns could continue being a critical factor in the effective recovery of the travel and tourism sectors.
On top of that, the regional gaming market is likely to continue recovering as airline capacity and air connectivity in the region improves.
In Malaysia, Genting aims to place emphasis on operational excellence and effective cost management, positioning the group to capitalise on the long-term growth trajectory in travel from the wider region
It will also continue to invest in infrastructure enhancements at Genting Highlands.
The group also remains cautious of the challenges implicit in the operating environment in the UK market, while in the US, Genting will be steadfast in exploring opportunities to reinforce its competitive position in the region, which include developments surrounding the New York Gaming Facility Board’s Request for Application to solicit proposals for up to three commercial casinos in New York State.
"Meanwhile, the group will continue to implement various productivity enhancement initiatives and capability-sharing efforts to drive synergies between RWNYC and Empire’s properties and improve the overall returns of the group’s US business.
"In the Bahamas, the group will continue to collaborate with international cruise operators to increase the number of port calls at RW Bimini,” it noted. - Bernama