Genting Malaysia has revealed its earnings report for the period of 3 months to June 30, 2023, showing a profit of MYR30.3 million (US$6.5 million), meaning it managed to turn the better a loss of MYR42.3 million (US$9.1 million) from 2022, as well as a loss of income of MYR45.4 million (US$9.8 million) in the first quarter.

Profit flow to Resorts World Genting:

The increased profit was mainly due to rising income at the firm’s leading facility, Resorts World Genting. There, profit inflow increased by 17% compared to the previous year to MYR1.53 billion (US$329 million), which further increased the company’s total income to MYR2.47 billion (US$532 million), meaning that increased by 14%. However, Genting’s other facilities in Egypt, the UK, the Bahamas and the USA also experienced a slight improvement in profits.

As for company-wide adjusted EBITDA of MYR447.9 million (US$96.4 million), it declined 28% year-over-year and 25% quarter-on-quarter due to lack of investment. But, Resorts World Genting experienced a 16% increase in adjusted EBITDA to MYR532.3 million (US$115 million).

Improved results thanks to the return of foreign visitors:

In a record after the firm’s 2Q23 revenue call, Alpa Aggarwal and Tushar Mohata, analysts at Nomura, commented: “The improved performance in Malaysia was largely thanks to the return in numbers of foreign visitors, which helped push total visitation up from 4.9 million in Q1 to 5.4 million. Almost all hotel rooms are now operational in response to demand, even though visitors from China are yet to ramp up and in 2Q23 hotel guests from China were only 29% of pre-pandemic levels. The Average number of hotel rooms available in 2Q23 was ~10K, and occupancy was 98%.”

In addition, they added: “Overall guest numbers grew by 80% year-on-year and 10% quarter-on-quarter, however foreign guest numbers were up by more than 100% year-on-year and by 32% sequentially.”

Profit growth during the first 6 months of 2023:

Looking at the first 6 months of this year, Genting Malaysia also experienced a 22% increase in profits to MYR4.76 billion (US$1.02 billion), involving a 32% growth in Resorts World Genting to MYR2.96 billion, which is roughly US$637 million. Then there is adjusted EBITDA of MYR1.04 billion, which is approximately US$224 million, which was unchanged from the previous year, and a net loss of MYR15.1 million, which is approximately US$3.3 million, was down from a loss of MYR190.1 million (US$40.9 million) from 2022.

Looking into the future, Genting Malaysia said: “The Group continues to be cautiously optimistic of the near-term outlook of the leisure and hospitality industry and remains positive in the longer-term.”

Encouraging tourism growth in RWG as a primary focus:

As for Malaysia, the group’s stays primarily focused on boosting tourism growth, business organization and successful management in Malaysia’s premier integrated resort destination Resorts World Genting (RWG). Furthermore, it will use RWG’s services to earn income from the growing number of tourists to Malaysia “to drive incremental foreign visitation to RWG.”?

Speaking on the matter, the firm said: “To further strengthen the resilience of the Group’s business, the Group will optimize yields through database marketing, working with strategic partners to augment the Group’s assets and product offerings, particularly in the mid-hill location, whilst strengthening and expanding the Group’s distribution channels. Meanwhile, the Group will continue to invest in the infrastructure at Genting Highlands to elevate the customer experience as well as to enhance the safety and wellbeing of guests and the community at RWG.”