Genting Malaysia Berhad saw its net profit soar by 64% to MYR705.4 million (US$173.5 million) and its Adjusted EBITDA by 12% to MYR748.5 million in the three months to 31 December 2018, despite seeing a slight 1% decline in revenue for the period to MYR2.51 billion (US$617.2 million).
The improved Adjusted EBITDA results was attributed to an increase in Adjusted EBITDA from the company’s leisure and hospitality business in the US and Bahamas thanks to higher revenues at Resorts World NYC.
At the company’s flagship property in Malaysia, Resorts World Genting (RWG), revenue grew by around 1% to MYR1.7 billion, with Adjusted EBITDA down 3% to MYR582.2 million. The company cited an occupancy rate of 98% for the period with visitation of around 6.6 million people in a quarter where RWG launched a number of new attractions including Empire by Zouk, Zouk Club, the VOID and the Skytropolis Funland indoor theme park.
In the United Kingdom (UK) and Egypt, the group’s operations recorded a 14% decline in revenue and 3% fall in Adjusted EBITDA to MYR426.6 million and MYR62.1 million respectively due to lower hold percentage and volume of business from the premium players segment.
In the US and Bahamas, the group’s operations registered a 12% increase in revenue to MYR343.0 million while adjusted EBITDA more than doubled to MYR92.0 million.
Genting Malaysia’s Full Year 18 results saw revenue rise 6% to MYR9.93 billion and Adjusted EBITDA by 30% to MYR2.87 billion. However, the group recorded a net loss for the year to MYR86.3 million due to the impairment loss of MYR1.83 million on an investment in promissory notes issued by the Mashpee Wampanoag Tribe.
In a statement, Genting Malaysia said it remains optimistic about the growth potential of the leisure and hospitality industry, despite group-related concerns over new casino taxes set to be implemented in Malaysia and an ongoing legal stoush over the RWG outdoor theme park.
“The development plans and options for the outdoor theme park are being reviewed amid ongoing legal proceedings,” Genting said. “The group remains committed to the outdoor theme park at RWG as a growth initiative in Malaysia.”
