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Malaysia – Genting bounces back with better business in Malaysia, UK and US

By - 25 February 2022

Malaysian operator Genting Malaysia generated revenue in in the fourth quarter of RM1,889.2m, an increase of 81 per cent, as all three of its global business segments delivered improved results.

The quarter saw higher business volume from the gaming and non-gaming segments after Resorts World Genting
Malaysia, which resumed its operations on September 30 2021 followed by the lifting of inter-state travel restrictions since 11 October 2021.

RWG was temporarily closed since 1 June 2021 in compliance with a government directive to curb the spread of COVID-19 virus. Revenue for 4Q 2020 was impacted by the re-imposition of travel restrictions in most states in the country from 14 October 2020;

The company also reported higher revenue from the leisure and hospitality businesses in the United Kingdom and Egypt by RM317.1m or more than three times of the level reported in 4Q 2020, mainly due to higher volume
of business for the group’s land-based casinos in the UK and Crockfords Cairo. The land-based casinos in the UK have recorded an improved performance since re-opened in mid-May 2021. In 4Q 2020, the land-based casinos were intermittently closed throughout the period amid a resurgence of COVID-19 cases in the country;

There was also higher revenue from the leisure and hospitality businesses in the United States of America (US) and
Bahamas by RM105.2m or 43 per cent, 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 4Q 2020, RWNYC operated with limited operating hours from mid-November 2020 in compliance with a government directive.

The company said: ” While the outlook for international tourism is gradually improving, uncertainties surrounding COVID-19 developments will continue to pose headwinds to global travel. Nevertheless, higher vaccination rates worldwide and the introduction of vaccine passports in certain countries will support the recovery of the tourism, leisure and hospitality industries, including the regional gaming sector.

“Against this backdrop, 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,” it added. “In Malaysia, the latest announcement by government authorities on the potential reopening of national borders will further support the Group’s recovery given RWG’s prime position as a leading integrated resort destination in the region. Meanwhile, the soft opening of the highly anticipated first class, world-class Genting SkyWorlds took place 8 February 2022 and the Group is focused on the progressive roll out of the remaining attractions in the theme park. The addition of Genting SkyWorlds complements RWG’s extensive entertainment offerings and will be a key growth initiative for the Group in Malaysia.

“In the UK and Egypt, the Group remains focused on sustaining its recovery momentum by capitalising on the
improving trading environment following the relaxation of COVID-19 restrictions. The Group will continue to ramp
up its operations in line with demand, whilst proactively managing its cost structure to better adapt to the fluid
operating environment.”

“In the US, the Group remains committed to expanding its presence and strengthening its market leading position
in the New York State. To this end, the Group will continue to pursue strategic initiatives between RWNYC and
Empire to improve business volume and overall returns of its US operations. The development of Resorts World
Hudson Valley, a new video gaming machine facility located in Orange County, New York is progressing well
and remains on track to open in the summer of 2022. In addition, preparations are underway for Empire to
commence its mobile sports betting operations in New York. At the same time, the Group will also place
emphasis on scaling up operations at RWNYC following the completion of the USD400 million expansion project
to transform the property into a world-class integrated resort destination. In the Bahamas, the Group will continue
to leverage cross-marketing initiatives with strategic partners to drive visitation and spend at Resorts World
Bimini (RW Bimini) through increased port calls at the new RW Bimini Cruise Port.”

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