Genting Berhad, the Malysia-headquartered conglomerate, accrued revenues totalling RM6.1bn ($1.3bn/€1.2bn/£1.0bn) from its leisure and hospitality division in the three months to 30 September 2023. This was up 27% compared to Q3 2022.
Double-digit growth was recorded in each of its geographical zones, including its two largest properties in Malaysia and Singapore.
Tourism recovery drives growth for Genting
Resorts World Sentosa (RWS) in Singapore saw year-on-year growth of 42%, with revenue totalling RM2.4bn during the period. The resort continued to benefit from the sustained recovery of travel and tourism.
In Malaysia, revenue at Resorts World Genting (RWG) was up 20% to RM1.7bn. This was, Genting said, mainly due to higher volume of business registered by RWG’s gaming and non-gaming segments.
Revenue from the US & Bahamas zone was up 16% to RM1.5bn with strong performances at its Resorts World properties in New York City, Las Vegas and Bimini.
Resorts World Las Vegas achieved a new record for revenue and EBITDA in Q3 2023. Better performance was driven by the continued growth of its convention business, strong performance from casino and the strengthening of the US dollar. Hotel occupancy and average daily rate for Q3 were 91.1% and $246 respectively, compared with 86.4% and $232 in Q3 2022.
RW Bimini’s operating performance improved with higher revenue as a result of relaxation on travel restrictions since June 2022 leading to a higher number of cruise calls that contributed positively to its revenue.
The UK & Egypt zone was also aided by higher volume of business, with revenue up 26% to RM495.0m.
The Genting Berhad group’s total revenue, including its plantation, power and property divisions, was up 20% year-on-year to RM7.4bn.
Genting’s earnings boosted by higher revenues
The leisure and tourism division posted a profit of RM2.4bn, which was up 43%. Singapore’s profit was up 47% to RM1.2bn, while Malaysia was up 25% to RM714.0m. The US & Bahamas and UK & Egypt zones were up 76% to RM370.4m and 34% to RM99.1m respectively.
Genting did not give itemised information regarding outgoings per sector, but overall adjusted EBITDA was up 33% to RM2.7bn for the quarter. Overall cost of sales for all business segments grew from RM4.2bn to RM4.9bn.
In Malaysia, UK & Egypt and US & Bahamas, a higher EBITDA was recorded primarily due to higher revenue. However, gains in each region were partially offset by higher operating expenses in Q3.
Strong growth throughout the year for Genting
Genting Berhad’s leisure and hospitality division has enjoyed a successful year to date. Revenue for the nine months to 30 September is up 33% to RM16.2bn. Revenue in Singapore is up 60% year-on-year, with double-digit growth also in Malaysia and US & Bahamas.
Adjusted EBITDA for the year to 30 September is up 46% to RM5.9bn. RM2.7bn of that came from Singapore, with RM1.9bn from Malaysia.
Looking ahead, Genting said it remains cautious of the near-term outlook of the leisure and hospitality industry. However, it is positive in the longer-term. Global economic recovery is expected to remain slow and uneven. An escalation of geopolitical tensions, ongoing tight monetary policy and moderating growth momentum in certain major economies amid high inflation is expected to pose continued headwinds to global growth.
“The positive outlook for international tourism is expected to be sustained, although macroeconomic concerns could continue being a critical factor in the effective recovery of the travel and tourism sectors,” Genting added. “Meanwhile, the regional gaming market is expected to continue recovering as airline capacity and air connectivity in the region improves.”