GENTING MALAYSIA PROFIT SOARS
RM323.5m earnings mainly due to higher revenue from local and US operations
GENTING Malaysia Bhd’s net profit more than doubled to RM323.5 million in the first quarter ended March 31 from RM161.56 million a year ago.
Genting Malaysia, with a market capitalisation of RM34 billion, can expect the momentum to sustain with its Genting Integrated Tourism Plan (GITP) poised to boost growth.
Its parent Genting Bhd, meanwhile, saw its interim net profit more than triple to RM603.1 million from RM130.8 million a year ago, driven by its hospitality, leisure and plantation activities.
Its revenue rose to RM4.77 billion from RM4.07 billion previously.
Genting Malaysia’s improved performance was mainly due to higher revenue from the leisure and hospitality business in Malaysia as well as in the United States, it said.
It achieved RM2.22 billion revenue compared with RM2.21 billion a year ago.
Genting Malaysia said the significant expansion and redevelopment under the GITP, once completed, was expected to elevate Resorts World Genting’s (RWG) position as the destination of choice in the region.
“GITP ’s remaining facilities and attractions will open progressively from this year onwards, complementing the new and existing attractions.
The indoor theme park and retail outlets in the First World Plaza were closed for a complete makeover and were scheduled to re-open next year with more exciting entertainment options, it said.
Genting Malaysia said while the operating environment for the regional gaming market had shown a sign of recovery, the outlook for international tourism was expected to remain positive across all regions.
“The group remains cautious on the near-term outlook of the leisure and hospitality industry, but remains optimistic on the growth potential of the industry in the long term,” it said.
Genting Malaysia’s local leisure and hospitality business recorded a higher revenue in the quarter, mainly contributed by a better hold percentage for the mid to premium segment of the business, even though the volumes were lower.
Occupancy rate at RWG’s hotels was higher at 90 per cent amid higher room inventory.
In the United States, Genting Malaysia said Resorts World Casino New York City maintained steady business growth and continued to lead the Northeast US region in terms of gaming revenue, amid growing regional competition.
It would continue to boost direct marketing efforts to grow the visitation levels and frequency of play at the resort, it added.
In the United Kingdom, the group’s revenue from the casino business eased by RM61.6 million, mainly due to the weaker pound exchange rate to the ringgit.
It, however, recorded a strong performance from the non-premium players business, where it continues to grow its market share.
The significant expansion and redevelopment under the Genting Integrated Tourism Plan, once completed, is expected to elevate Resorts World Genting’s position as the destination of choice in the region.