Genting Malaysia says it expects to ramp up operations at its flagship integrated resort, Malaysia’s Resorts World Genting, in the coming months by utilizing its existing assets and opening more attractions at Genting SkyWorlds theme park.
Pointing to the reopening of international borders as supporting of the group’s recovery prospects, Genting Malaysia said in an investor presentation that its short-term growth would see the company “ramp up operations by leveraging existing assets.”
Genting Malaysia will place an emphasis on “maximizing yield contributions by intensifying database analytics and targeted marketing efforts” and “enhance overall operational efficiencies and service delivery to elevate quality of guest experience.”
The “progressive roll-out of the remaining attractions at Genting SkyWorlds” is a focus, it added.
Covering 26 acres at RWG, Genting SkyWorlds will offer 26 attractions and have capacity for 20,000 people per day once fully operational although it opened in February at only 50% capacity due to COVID-19 restrictions.
Nomura analysts Tushar Mohata and Alpa Aggarwal said at the time that Genting SkyWorlds would be a “missing piece” for RWG.
“We believe that the park by itself might not be profitable due to start-up costs such as depreciation and interest on debt, but it is likely to be a highly effective ‘loss-leader’ to attract more family groups to the resort, which can boost other forms of revenue such as hotels, gaming and shopping,” they said.
“Once the borders are reopened, the resort, now complete with the theme park, will also be able to market to international visitors, who previously used to set aside one day in their Malaysia itinerary to visit Genting Highlands, but might have been skipping it during the construction period.”
Genting Malaysia recently reported a net loss of MYR147.9 million (US$33.6 million) in the three months to 31 March 2022, down from a profit of MYR124.0 million (US$29.5 million) in 4Q21 but vastly improved on the MYR501.3 million (US$121 million) loss recorded in the March 2021 quarter.
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