Better quarter-on-quarter EBITDA for Genting

KUALA LUMPUR: Genting Bhd saw a quarter-on-quarter improvement in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to Rm1.18bil in the fourth quarter of financial year 2020 (FY20) compared with Rm1.1bil in the third quarter of FY20, thanks to its leisure and hospitality as well as plantation divisions.

The improvement in EBITDA for the leisure and hospitality division was mainly due to Resorts World Sentosa (RWS) as it rolled out a series of attractive packages and specially curated staycation experiences for customers.

The increased EBITDA from its leisure and hospitality businesses in the US and Bahamas were due to higher volume of business recorded following the resumption of Resorts World Casino New York City’s (RWNYC) operations in early September 2020.

Meanwhile, its plantation division’s EBITDA improved during the quarter on the back of higher fresh fruit bunches (FFB) production and better palm product selling prices.

For the fourth quarter ended Dec 31, 2020, the group posted revenue of Rm3.05bil, an 8% decline from Rm3.3bil in the third quarter of FY20.

Year-on-year (y-o-y), the group’s revenue declined by 43% to Rm3.05bil from Rm5.3bil. The main contributor to the lower revenue was the leisure and hospitality division.

The revenue and EBITDA of RWS was lower than that of fourth-quarter FY19, as it was impacted by regulatory restrictions, border closures and operating capacity due to the Covid-19 pandemic.

Meanwhile, Genting Malaysia Bhd’s (GENM) revenue for the fourth quarter ended Dec 31, 2020 declined by 57% to Rm1.04bil.

GENM recorded adjusted EBITDA of Rm170.4mil for the quarter despite the leisure and hospitality business operating at a reduced capacity amid the prevalence of Covid-19 pandemic.

The group recorded a pre-tax loss of Rm285.1mil and a net loss of Rm258.2mil for the fourth quarter.

In FY20, the group reported a 56% decline in total revenue to Rm4.53bil, predominantly due to the unprecedented disruptions to the group’s global operations in the year resulting from the severe outbreak of the Covid-19 pandemic.

Nevertheless, the group achieved adjusted EBITDA of Rm350.3mil for the year.

Including depreciation and amortisation, impairment losses and finance costs, the group recorded loss before tax and net loss of Rm2.14bil and Rm2.36bil respectively.

Genting and GENM declared a special dividend of 8.5 sen each.