KUALA LUMPUR (Feb 24): Genting Malaysia Bhd (GENM), whose resorts include Resorts World Genting (RWG) in Malaysia and Resorts World New York City and Resorts World Catskills in the US, saw its fortunes reverse in the fourth quarter ended Dec 31, 2021 (4QFY21), as it staged a turnaround to post a net profit of RM174.12 million compared with a net loss of RM240.85 million a year ago. 

This resulted in the group posting an earnings per share of 3.08 sen for 4QFY21 compared with a loss per share of 4.26 sen for 4QFY20.

In a bourse filing on Thursday (Feb 24), GENM attributed the turnaround to contribution from the leisure and hospitality business in Malaysia, the UK and Egypt, as well as recognition of gain on disposal of subsidiaries of RM119.8 million in 4QFY21.

Quarterly revenue rose 81.5% year-on-year (y-o-y) to RM1.89 billion from RM1.04 billion in 4QFY20.

GENM said the increase in 4QFY21 revenue was mainly due to higher revenue from the leisure and hospitality business, which grew 49% y-o-y to RM961.9 million, primarily driven by higher volume of business registered at RWG following its reopening on Sept 30, 2021. Additionally, the full lifting of interstate travel restrictions from Oct 11, 2021 further aided demand recovery at the resort.

The group also reported higher revenue from its property segment of RM123.1 million due to a gain from disposal of land in the current quarter under review.

GENM also declared a special dividend of nine sen per share for the financial year ended Dec 31, 2021 (FY21), payable on March 31. 

The improved quarterly performance resulted in the group posting a smaller net loss of RM946.83 million for the full year FY21 from RM2.26 billion in the previous year. However, revenue declined by 8.2% to RM4.16 billion in FY21 from RM4.53 billion in FY20. 

On its outlook, the group 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. 

Shares in GENM closed six sen or 2.07% lower at RM2.84 on Thursday, valuing it at RM16.86 billion.