Profit up but revenues fall for Genting Malaysia Bhd with VIP down in Malaysia
Genting Malaysia Bhd reported a 42 per cent increase in profit to US$12.3m for the first quarter ended March 31, 2025 (1Q25), driven by improvements via foreign exchange and better cost management.
Earnings came in below analysts’ expectations despite some improvement on quarter-on-quarter performance. Revenue was down to US$613m with a steep drop of seven per cent at Resorts World Genting (RWG) in Malaysia to US$382m due to challenges in the premium category.
At Resorts World Genting, VIP gross gaming revenues (GGR) dropped by 18 per cent whilst mass improved by seven per cent. Attendance was down seven per cent quarter-on-quarter to 5.7 m.
Revenues from casinos in the UK and Egypt operations dipped by seven per cent to US$97.4m with the US and Bahamas dropping by three per cent to US$501.3m. In the UK market, the recent purchase of Aspers Stratford in London will increase its revenues. In the Bahamas, it will improve visitation at RW Bimini by expanding its cruise strategy.
Genting said it was cautiously optimistic, highlighting challenges in the regional gaming market which it hopes to overcome ,with new ecotourism initiatives and anniversary events.
“We will continue to place emphasis on driving key business segments by improving yield management systems, operational efficiencies and service delivery, while adopting prudent cost management and an agile approach to navigate the increasingly challenging operating environment,” it said.
Nomura analysts Tushar Mohata and Alpa Aggarwal commented: “We think the weak share price is fundamentally a reflection of the weak net income line (EBITDA is already above pre-COVID levels whereas net income is not) and expect that the stock might continue to de-rate until there is a clear earnings turnaround.”
“Genting Malaysia recently also announced another related-party transaction to take full control of Empire Resorts which will likely result in higher share of losses and weaker balance sheet structure post consolidation.”
