Genting Malaysia has reported a profit of MYR 30.3 million ($6.5m) for the second quarter of this year as overseas visitors return to Resorts World Genting.
The company has reversed an MYR 42.3m ($9.1m) loss in the prior-year period and an MYR 45.4m ($9.8m) loss in the first quarter of this year (via Inside Asian Gaming).
Genting Malaysia’s improved results were driven by increased revenue at Resorts World Genting, which rose by 17 percent compared to the previous year to MYR 1.53 billion ($329m).
For the whole company, revenue was MYR 2.47bn ($532m), an increase of 14 percent. Group-wide adjusted EBITDA of MYR 447.9m ($96.4m) was down 28 percent compared to last year.
However, adjusted EBITDA for Resorts World Genting increased by 16 percent to MYR 532.3m ($115m).
In a note following an earnings call, Nomura analysts Tushar Mohata and Alpa Aggarwal said the improved performance was largely due to returning foreign visitors, which grew total attendance from 4.9 million in Q1 to 5.4 million in Q2.
“Almost all hotel rooms are now operational in response to demand – even though visitors from China are yet to ramp up and in [Q2] hotel guests from China were only 29 percent of pre-pandemic levels,” they wrote.
Overall attendance increased by 80 percent year-on-year and 10 percent quarter-on-quarter. However, overseas attendance was up by more than 100 percent year-on-year and by 32 percent quarter-on-quarter.
Increased revenue at Resorts World Genting
“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,” said Genting Malaysia.
“In Malaysia, the group remains focused on driving visitation, operational efficiencies and effective cost management at Resorts World Genting. The group will leverage its integrated resort offerings to capitalise on the increasing inbound tourist arrivals to Malaysia to drive incremental foreign visitation to Resorts World Genting.”
Genting Malaysia said it will “continue to invest in the infrastructure at Genting Highlands to elevate the customer experience” and “enhance the safety and wellbeing of guests and the community” at Resorts World Genting.
