GENTING MALAYSIA PROFIT SOARS

RM323.5m earn­ings mainly due to higher rev­enue from lo­cal and US op­er­a­tions

New Straits Times - - Business - AMIR HISYAM RASID KUALA LUMPUR bt@me­di­aprima.com.my

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.

PIC FROM GENTING MALAYSIA WEB­SITE

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.

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