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Malaysia – Genting Malaysia reports revenues up more than three times on last year

By - 27 May 2022

Genting Malaysia generated revenue in 1Q 2022 of RM1,721.3m, almost three times of the level reported in the first quarter of 2021.

The increase in revenue for this quarter was mainly due to higher revenue from the leisure and hospitality business in Malaysia by RM621.0 million or more than three times of the level reported in 1Q 2021, mainly due to higher business volume from the gaming and non-gaming segments as a result of the easing of travel restrictions during 1Q 2022. Revenue for 1Q 2021 was impacted by the temporary closure of Resorts World Genting (RWG) for almost 1 month followed by the re-imposition of travel restrictions across the country caused by the adverse impact of COVID-19 pandemic.

There was higher revenue from the leisure and hospitality businesses in the United Kingdom (UK) and Egypt by
RM355.1m from RM40.2m to RM395.3m, mainly due to the nationwide lockdown in the UK with effect from early January 2021 as a result of COVID-19 pandemic, where all the land-based casinos and resort operations were temporarily closed during 1Q 2021. The Group’s land-based casinos in the UK have re-opened since mid-May 2021; and higher revenue from the leisure and hospitality businesses in the United States of America (US) and
Bahamas by RM101.6m or 40 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 1Q 2021, RWNYC operated with limited operating hours in compliance with a government directive.

The company said: “The growth of the global economy is expected to be challenging due to disruptions caused by geopolitical tensions, prolonged supply chain issues and inflationary pressures. Whilst economic recovery in Malaysia is
expected to remain intact as the country transitions to the endemic phase of COVID-19, the challenges to the
global economic environment could pose downside risks.

“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. Therefore, the Group is positive on the longer-term outlook of the leisure and hospitality industry.

“In Malaysia, 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 1 April 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, 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.”

It added: “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.”

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