Genting revenue soars in first quarter

Leisure, hospitality divisions the main contributor

“Consequently, adjusted Ebitda of Rm1.3bil more than doubled from the first quarter of 2021, in line with the increase in revenue.” Genting Bhd

PETALING JAYA: Genting Bhd posted a revenue of Rm4.2bil in its first quarter ended March 31, 2022, which was a substantial increase of 87% compared with the previous corresponding quarter’s revenue of Rm2.25bil.

The group’s leisure and hospitality divisions were the main contributor to the higher revenue.

“Consequently, adjusted earnings before interest, taxation, depreciation and amortisation (Ebitda) of Rm1.3bil more than doubled from the first quarter of 2021, in line with the increase in revenue,” it said in a statement.

The group said revenue from Resorts World Sentosa improved over the first quarter of 2021, with operational performance being impacted by the pandemic.

“However, Ebitda dipped mainly due to the rise in utilities expenses and the expiry of Covid-19-related government support measures.”

Meanwhile, subsidiary Genting Malaysia Bhd recorded total revenue of Rm1.72bil, almost three times the level reported in the same quarter last year.

The group also registered adjusted Ebitda of Rm414.4mil, as compared to an adjusted loss before interest, taxation, depreciation and amortisation (Lbitda) of Rm110.4mil in the first quarter of 2021.

“The group’s loss before taxation was lower by 79% to Rm116.1mil after taking into consideration depreciation and amortisation, finance costs and the share of results in an associate. Net loss narrowed by 70% to Rm147.9mil,” it said.

Genting Malaysia said improvement during the first quarter was primarily due to overall higher volume of business at Resorts World Genting (RWG), as a result of the eased travel restrictions in the country.

“In contrast, the operating performance of RWG in the first quarter of 2021 was impacted by the strict Covid-19-related regulations nationwide, in addition to the temporary closure of RWG for approximately one month during the period.

“The group’s adjusted Ebitda in the first quarter of 2022 was also aided by higher debt recovery.”

In the United Kingdom and Egypt, revenue from the group’s operations recovered to Rm395.3mil, nearly 10 times the level recorded in the first quarter of 2021.

“In addition, the group registered adjusted Ebitda of Rm84.7mil as compared to an adjusted Lbitda of Rm51.7mil in the first quarter of 2021.

“The increase in revenue and adjusted Ebitda this quarter was mainly due to the impact of a resurgence in Covid-19 cases in the UK on the group’s operations in the first quarter of 2021, which resulted in the temporary closure of the group’s resort and landbased businesses.

“The group incurred higher payroll and related expenses in the first quarter of 2022 as compared to the first quarter of 2021, following the resumption of its UK operations since mid-may 2021,” it said.

On prospects for the remainder of the year, the group said the growth of the global economy is expected to be challenging due to disruptions caused by geopolitical tensions, prolonged supply chain issues and inflationary pressures.

“While economic recovery in Malaysia is expected to remain intact as the country transitions to the endemic phase of Covid-19, the challenges to the global economic environment could pose downside risks.

“International tourism is expected to continue its gradual recovery although weakening economic sentiments may delay the return of confidence in global travel,” it said.