(Updated)

Genting Malaysia's 1QFY22 net loss narrows as travel restrictions eased

Genting Malaysia's 1QFY22 net loss narrows as travel restrictions eased
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KUALA LUMPUR (May 26): Genting Malaysia Bhd’s net loss for the first quarter ended March 31, 2022 (1QFY22) narrowed to RM126.53 million from RM483.59 million a year ago, as revenue soared close to three folds to RM1.72 billion from RM623.35 million.

As a result, loss per share shrank to 2.24 sen from 8.55 sen.

In a bourse filing, it said the higher revenue was underpinned by the RM621 million or over three-fold increase in revenue from the leisure and hospitality business in Malaysia, compared to a year ago. This was mainly due to higher business volume from the gaming and non-gaming segments, as a result of the easing of travel restrictions during 1QFY22.

It said revenue for 1QFY21 was impacted by the temporary closure of Resorts World Genting (RWG) for almost one month, followed by the re-imposition of travel restrictions across the country caused by the adverse impact of the Covid-19 pandemic.

Meanwhile, the group saw revenue from the leisure and hospitality businesses in the United Kingdom (UK) and Egypt rise by RM355.1 million from RM40.2 million to RM395.3 million, mainly due to the nationwide lockdown in the UK with effect from early January 2021 as a result of the Covid-19 pandemic, where all the land-based casinos and resort operations were temporarily closed during 1QFY21. The group’s land-based casinos in the UK have re-opened since mid-May 2021.

The group also registered a 40% increase in revenue from the leisure and hospitality businesses in the United States of America (US) and Bahamas, mainly due to the strong operating performance from Resorts World New York City (RWNYC) since the full lifting of Covid-19 restrictions in June 2021. In 1QFY21, RWNYC operated with limited operating hours in compliance with a government directive.

The group said it is positive on the longer-term outlook of the leisure and hospitality industry, as international tourism recovers.

“International tourism is expected to continue its gradual recovery, although weakening economic sentiments may delay the return of confidence in global travel.

“Nevertheless, the progressive reopening of borders and continued easing of Covid-19 restrictions will improve optimism surrounding the tourism, leisure and hospitality industries, including the regional gaming sector,” it said.

In Malaysia, it said the group will continue to focus on ramping up operations at RWG, following further relaxation of Covid-19 restrictions in the country and the reopening of national borders since April 1, 2022.

In view of the increasing visitor turnout at the resort, the group will also place emphasis on maximising yield contributions by intensifying database analytics and targeted marketing efforts to grow key business segments.

At the same time, the group will continue to enhance overall operational efficiencies and service delivery to elevate the quality of guest experience at RWG.

In the UK, the sustainability of the group’s recovery momentum remains as the group’s main priority on the back of the lifting of all Covid-19 travel restrictions in the country.

While the group is mindful of the challenges implicit in the current operating environment, the group is confident that the operational improvements implemented in previous years, including enhancements to customer proposition and optimisation of the group’s cost structure, will position the group well for the year ahead.

In the US, the group’s operations continue to be resilient and the group remains focused on reinforcing its position as the leading gaming operator in the northeast US region, amid an increasingly competitive landscape.

Marketing efforts will be intensified to grow the group’s US customer database, whilst leveraging RWNYC’s latest improved facilities and Empire’s expanded product offerings to drive business volume and overall returns on the group’s US operations.

Meanwhile, the development of Resorts World Hudson Valley, a new video gaming machine facility located in Orange County, New York, is progressing well and emphasis continues to be placed on its timely completion.

In the Bahamas, the group will continue executing various cross-marketing initiatives, in addition to capitalising on the various world-class amenities available at the resort to drive visitation and spend at Resorts World Bimini.

Genting Malaysia closed one sen or 0.33% lower at RM2.98 on Thursday (May 26), valuing the group at RM17.75 billion. Year to date, the counter has risen 2.41%.

Jenny Ng