Operator News
Malaysia – New attractions paying off as profit doubles for Genting Malaysia
By Phil - 30 August 2018
Genting Malaysia has more than doubled its net profits this quarter, aided by visitations to Resorts World Genting (RWG) which saw revenue grow by 18 per cent.
The Group’s second quarter total revenue increased by six per cent to RM2,422.1m while adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 31 per cent to RM701.8m.
During the quarter, profit before tax (PBT) increased significantly by 88 per cent to RM465.1m while net profit more than doubled to RM378.2m.
The group stated: “This was mainly attributable to an improved hold percentage in the mid to premium players segment. The improved performance was also contributed by the new facilities and attractions under the Genting Integrated Tourism Plan (GITP), which have been well received. RWG’s new mid-hill and hilltop dining, retail and entertainment offerings attracted an increase in visitations by 18 per cent this quarter. Meanwhile, RWG’s hotels continued to record strong occupancy rates of 97 per cent in 2Q18. The Skytropolis indoor theme park is projected to open in the coming months and the Group remains focused on the roll out of the highly anticipated Twentieth Century Fox World Theme Park next year. With the addition of these exciting new attractions to RWG’s existing array of entertainment offerings, guests will be able to enjoy a wholesome world-class experience at the resort.”
In the United Kingdom (UK) and Egypt, the Group’s operations reported higher revenue by six per cent to RM436m primarily attributable to higher contribution from Crockfords Cairo and its UK interactive business, offset by overall lower business volumes from its UK land based casinos.
The group said: “In the UK, the group remains resolute in delivering sustainable performance by managing business volatility in the premium players segment. Amid the challenging operating environment, the group will focus on strengthening its position in the non-premium players segment by improving overall business efficiency and growing market share. The group will also continue to place emphasis on stabilising operations at Resorts World Birmingham and growing volume of business at the property.”
The group’s operations in the United States of America (US) and Bahamas recorded lower revenues by 10 per cent to RM344.7m. This was largely attributable to lower business volumes from Resorts World Casino New York City (RWNYC) as a result of increased competition.
The operator said: “RWNYC maintained its position as market leader by gaming revenue in the Northeast US region. Nevertheless, the group will continue enhancing and intensifying direct marketing efforts to drive visitation and frequency of play at the property to ensure that RWNYC continues to deliver a steady performance despite increasing competition.” Meanwhile, the development of the USD400m expansion at RWNYC is well underway. The project, which is anticipated to open in phases starting from the end of 2019, will transform RWNYC into a premium integrated resort destination with a multitude of gaming and non-gaming amenities.”
