Genting Malaysia Berhad has delivered impressive financial results for the first half (H1) and second quarter (Q2) of 2024. The company’s performance underscores its resilience and growth across its various business segments.
Robust Financial Growth
Genting Malaysia’s Q2 2024 saw a notable 8% increase in revenue, reaching RM2.67 billion ($0.62 billion). This revenue growth was complemented by a remarkable 72% rise in adjusted EBITDA, which totaled RM770.4 million. Both profit before taxation (PBT) and net profit experienced substantial increases, with PBT more than doubling to RM203.2 million and net profit reaching RM62.8 million.
The company’s performance for the first half of 2024 was equally strong. Revenue grew by 14% to RM5.43 billion, while adjusted EBITDA saw a 37% increase, amounting to RM1.42 billion. A notable turnaround was achieved in net profit, which stood at RM99.4 million, a significant improvement from the net loss of RM15.1 million reported in the same period last year.
Regional Business Performance
Genting Malaysia’s leisure and hospitality segments performed well across various regions, contributing to the company’s overall revenue growth. In Malaysia, the integrated resort benefited from a recovery in regional travel, resulting in increased business volumes and higher revenues. Similarly, the UK saw revenue growth driven by enhanced operational performance and increased business volumes. The company is poised to expand its market share in the UK and reorganize operations for improved efficiency.
In Egypt, revenue growth was attributed to better operational performance, while the US market saw increased revenues due to effective marketing strategies and an expanded customer database at Resorts World New York City (RWNYC) and Empire assets. The Bahamas also experienced a rise in revenue, reflecting positive trends similar to those in other regions.
Financial Drivers and Challenges
The impressive rise in adjusted EBITDA was significantly bolstered by net foreign exchange translation gains, which provided a substantial boost to the financial results. However, the company faced challenges with EBITDA margins in certain regions due to higher operating and payroll expenses. These factors impacted overall profitability despite the robust revenue growth.
Dividend Declaration
In light of its strong financial performance and commitment to shareholders, Genting Malaysia’s board has declared an interim single-tier dividend of 6.00 sen per ordinary share. This decision reflects the company’s dedication to providing sustainable returns to its investors and underscores its solid financial health.
Strategic Outlook
Looking forward, Genting Malaysia maintains a cautiously optimistic outlook. In Malaysia, the focus will remain on leveraging the integrated resort to capitalize on the recovery of regional travel. In the UK, the company plans to expand market share and enhance operational efficiency. In the US, marketing initiatives will be emphasized to drive visitations and expand the customer base at RWNYC and Empire assets.
Genting Malaysia Berhad’s financial results for H1 and Q2 2024 highlight a period of significant growth and operational success. With substantial increases in revenue and profitability, coupled with strategic plans for expansion and efficiency, the company is well-positioned for continued success. The interim dividend declaration further demonstrates Genting Malaysia’s commitment to delivering value to its shareholders, reinforcing a positive outlook for the future.