Genting Malaysia rebounds to post profit again

By William Brown Updated
Genting Malaysia rebounds to post profit again

Genting Malaysia has returned to profit, buoyed by a resurgence in business volumes across three of its key global gaming markets.

Inside Asian Gaming reports the company reported a US$29.5 million net profit in the fourth quarter of 2021, reversing a US$61.5 million loss from a year ago, thanks to an 81 per cent year-on-year increase in group-wide revenue to US$50 million.

Adjusted earnings grew 333 per cent to US$176 million.

The results included a 49 per cent year-on-year increase in revenue to US$229 million at Malaysia’s Resorts World Genting, while adjusted earnings more than doubled to US$85 million, after the integrated resort reopened on 30 September 2021.

The full lifting of interstate travel restrictions from 11 October further aided demand recovery at the resort.

In the UK and Egypt, revenue almost quadrupled to US$103 million with adjusted earnings US$42.5 million, following the easing of COVID-19 restrictions in the regions.

In the United States and Bahamas, revenue increased by 43 per cent to US$83.5 million, mainly attributable to a strong rebound in demand at Resorts World New York City.

With GGR returning to pre-COVID-19 levels, adjusted earnings from the segment improved by 65 per cent to US$28 million.

For FY21, Genting Malaysia saw revenue fall eight per cent to US$990 million, although adjusted earnings more than doubled to US$173 million.

Net loss narrowed from US$562 million in 2020 to US$274 million in 2021.

Providing its outlook for the year ahead, the company said that although the prospects for international tourism are gradually improving, “uncertainties surrounding COVID-19 developments will continue to pose headwinds to global travel.

“Nevertheless, higher vaccination rates worldwide and the introduction of vaccine passports in certain countries will support the recovery of the tourism, leisure and hospitality industries, including the regional gaming sector.

Against this backdrop, the group said it remains cautiously optimistic on the near-term prospects of the leisure and hospitality industry but is wary of the increased spread of COVID-19 variants.

Genting opens  new theme park at Resorts World

The new US$789 million outdoor theme part at Malaysia’s Resorts World Genting opened on February 8.

The 26-acre theme park, which is slated to eventually have 26 separate attractions, is likely to be “loss-generating due to heavy depreciation”, nonetheless, Maybank Investment Bank expects the theme park to be accretive to the resort’s overall earnings.

Resorts World Genting is Malaysia’s only casino facility, promoted by Genting Malaysia.

As part of the theme park’s soft opening, Genting SkyWorlds is offering a 20 per cent discount on tickets until March 31.

Genting Malaysia’s head of business operations and strategies Lee Thiam Kit said the theme park will contribute to the tourism sector and economy with the creation of more than 1000 jobs.

After purchasing tickets online, guests are encouraged to download the Genting SkyWorlds Theme Park mobile app, which gives a comprehensive guide to the attraction with real-time information.

It also enables guests to navigate and experience the park virtually prior to arrival, giving a head-start on what to do, where to go and how to get there.

Among other features, guests will be able to check wait times for rides, attractions and shows; receive promotional offers and discount vouchers; discover dining, shopping and games; and access its advanced Photo+ service.

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