Genting Malaysia Berhad has disclosed impressive financial results for the fourth quarter of 2023, showcasing notable revenue growth and a substantial increase in adjusted EBITDA. The company’s flagship resort, Resorts World Genting (RWG), played a pivotal role in driving these positive outcomes. Additionally, expansions in other regions, including the United Kingdom, Egypt, the USA, and the Bahamas, contributed significantly to the overall performance.
Malaysia – Resorts World Genting (RWG):
RWG reported a commendable 13% year-on-year revenue increase, amounting to MYR1.80 billion (US$379 million). This surge in revenue was complemented by a robust 78% rise in adjusted EBITDA, reaching MYR529.5 million (US$112 million). However, it’s noteworthy that quarter-on-quarter Adjusted EBITDA witnessed a slight decline of 6%, primarily attributed to escalated marketing expenses during the year-end holiday season. Moreover, management highlighted an upcoming 2pp increase in sales and service tax, effective March 2024, which is anticipated to impact revenues and margins for Malaysia operations.
United Kingdom and Egypt:
The group experienced a substantial 28% growth in revenue, totaling MYR429.7 million (US$90.5 million), driven by increased business volumes. Adjusted EBITDA also surged by 50% to MYR90.2 million (US$19.0 million) in this region.
USA and the Bahamas:
Revenue in this region witnessed a modest 1% increase, amounting to MYR465.7 million (US$98.1 million). Resorts World New York City and Resorts World Bimini contributed significantly to this growth, showcasing improved operating performance, attributed to higher cruise calls and visitation to the resort.
Overall Financial Performance:
In the fourth quarter of 2023, Genting Malaysia Berhad reported a net profit of MYR217.6 million (US$45.8 million), marking a remarkable turnaround from a net loss of MYR469.0 million (US$98.8 million) in the corresponding period of the previous year. This reflects the effectiveness of the company’s strategic initiatives and operational efficiencies.
Annual Performance Overview:
For the fiscal year 2023, Genting Malaysia Berhad achieved substantial growth in total group revenue, which surged by 18% to MYR10.19 billion (US$2.15 billion). Adjusted EBITDA also exhibited significant improvement, escalating by 24% to MYR2.63 billion (US$554 million). Notably, the company achieved a net profit of MYR360.8 million (US$76.0 million), a stark contrast to the net loss of MYR667.4 million (US$141 million) recorded in the preceding fiscal year.
Future Outlook and Strategic Initiatives:
Despite prevailing competitive pressures, Genting Malaysia Berhad remains optimistic about its growth prospects, particularly in Malaysia. The anticipated growth in regional tourism and domestic private consumption bodes well for the company’s strategy to enhance visitation and customer spend at RWG. To sustain its competitive edge, the company plans to focus on innovative marketing initiatives to expand its customer base while leveraging value offerings to drive growth in key business segments. Furthermore, ongoing investments in infrastructure enhancements at Genting Highlands underscore the company’s commitment to ensuring the safety and satisfaction of visitors and the local community.
Genting Malaysia Berhad’s robust financial performance in the fourth quarter of 2023 underscores its resilience and adaptability in navigating challenging market conditions. With promising growth opportunities on the horizon, coupled with strategic investments and operational efficiencies, the company is well-positioned to capitalize on emerging trends and sustain its momentum in the global hospitality and entertainment industry.