Genting Malaysia Berhad has reported a remarkable financial performance for the third quarter of 2023, signaling a strong recovery from the challenges faced in the same period the previous year. With a net profit of MYR158.3 million (US$33.8 million), the company has not only reversed a loss from the corresponding quarter but has also demonstrated significant growth across its gaming operations worldwide.
Key Financial Highlights:
Net Profit Surge: Genting Malaysia Berhad’s net profit for Q3 2023 stands at MYR158.3 million, a substantial improvement from the MYR8.2 million loss reported in the same period last year.
Revenue Growth Across Regions: The company experienced a noteworthy 19% increase in group-wide revenue, reaching MYR2.71 billion (US$579 million). Notably, Resorts World Genting (RWG), the flagship Malaysian integrated resort, contributed MYR1.68 billion (US$359 million) to this figure, showcasing a robust 20% improvement.
Global Expansion Success: Genting Malaysia’s properties in the UK and Egypt recorded a 26% growth in revenue, amounting to MYR494.9 million (US$106 million). Similarly, its properties in the US and Bahamas saw an 11% increase, reaching MYR473.7 million (US$101 million).
Adjusted EBITDA Soars: Group-wide Adjusted EBITDA witnessed a significant year-on-year increase of 27%, totaling MYR747.6 million (US$160 million). This growth is reflected in Malaysia, where Adjusted EBITDA rose by 27% to MYR563.9 million (US$120 million).
Nine-Month Performance Overview:
Consistent Revenue Growth: Over the first nine months of 2023, Genting Malaysia reported a 21% increase in revenues, reaching MYR7.47 billion (US$1.60 billion). The lion’s share of this growth is attributed to RWG, contributing MYR4.62 billion (US$987 million), marking a substantial 27% increase.
Steady Adjusted EBITDA: The company recorded a 9% increase in Adjusted EBITDA for the same period, amounting to MYR1.79 billion (US$382 million). RWG played a crucial role in this, with a 31% increase in Adjusted EBITDA, reaching MYR1.53 billion (US$327 million).
Strategic Outlook:
Genting Malaysia remains committed to enhancing productivity and fortifying the resilience of its business in an evolving and challenging operating environment. The emphasis is on operational excellence and effective cost management to position the company to capitalize on the long-term growth trajectory in regional travel.
Operational Strategies:
Cost Management and Productivity: The company will continue to drive productivity improvements, ensuring operational efficiency and cost-effectiveness to navigate challenges effectively.
Long-Term Growth Focus: Genting Malaysia is strategically positioning itself to benefit from the anticipated long-term growth in travel within the wider region. This involves a proactive approach to optimizing yield management and database marketing efforts.
Genting Malaysia Berhad’s impressive Q3 2023 results underscore its resilience and strategic adaptability in a dynamic business landscape. The robust financial performance, particularly driven by Resorts World Genting, positions the company for sustained growth. As it continues to navigate challenges, the commitment to operational excellence and strategic optimization will likely play a pivotal role in securing its long-term success in the global gaming industry.