Genting Berhad’s flagship property, Resorts World Las Vegas (RWLV), has reported stellar performance in the third quarter of 2023, citing a diverse calendar of events as a key contributor. With a remarkable 11.7% quarter-on-quarter increase in revenue to US$230 million and a 52.9% surge in EBITDA to US$52 million, RWLV’s results underscore its growing prominence in the hospitality and entertainment industry.
Key Financial Highlights:
Revenue increased by 11.7% QoQ to US$230 million.
EBITDA rose by 52.9% to US$52 million.
Hotel occupancy reached 90.4% for the quarter.
Average daily rate increased to US$256.
Factors Driving Performance:
RWLV’s success in 3Q23 is attributed to a combination of factors:
Diverse Events Calendar: The property benefited from a mix of concert headliners, major sporting events like the NFL Super Bowl and college basketball tournaments, and a robust convention quarter, contributing to strong visitation.
Currency Impact: The stronger USD played a role in boosting revenue and EBITDA.
Occupancy and Rates: Hotel occupancy for the quarter stood at an impressive 90.4%, outperforming the year-to-date average of 82.4%. The average daily rate increased to US$256, compared to US$233 million year-to-date.
Outlook and Future Projects:
RWLV management remains focused on yield improvement and anticipates positive results from events like the Formula 1 weekend in November.
Despite potential competition risks from the upcoming Fontainebleau Las Vegas property, RWLV management is optimistic that the new resort will attract more traffic to the north end of the Las Vegas Strip.
RWLV expects to maintain a strong mix of convention base room nights in 2023.
Future projects, including additional dining, entertainment, and retail offerings, coupled with new performances at the Resorts World Theatre, are poised to drive significant foot traffic in the coming quarters.
Group-Wide Performance:
Genting Berhad reported a 20% YoY increase in group-wide revenues to MYR7.37 billion (US$1.57 billion) in 3Q23.
EBITDA saw a substantial 33% increase to MYR2.73 billion (US$583 million).
Strong performances at Resorts World Sentosa in Singapore and Resorts World Genting in Malaysia contributed significantly to the overall group performance.
Resorts World Las Vegas’ exceptional 3Q23 results underscore its growing significance in the global hospitality and entertainment landscape. With a strategic focus on diverse events and future expansion projects, RWLV is well-positioned to continue its upward trajectory, contributing to Genting Berhad’s overall success in the industry.