Genting Malaysia 3Q net loss narrows to RM289m, says overseas ops maintaining strong recovery momentum

Genting Malaysia 3Q net loss narrows to RM289m, says overseas ops maintaining strong recovery momentum
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KUALA LUMPUR (Nov 25): Genting Malaysia Bhd's net loss narrowed to RM289.25 million for the third quarter ended Sept 30, 2021, from RM704.64 a year earlier, as its overseas operations maintained their strong recovery momentum.

Loss per share fell to 5.12 sen from 12.46 sen, according to the leisure and gaming group’s bourse filing.

Quarterly revenue fell 42% to RM826.27 million, from RM1.42 billion last year, mainly contributed by its UK and Egypt operations (RM406 million), US and Bahamas operations (RM364.2 million) and Malaysia operations (RM17.7 million).

The group also said that lower operating expenses in Malaysia, coupled with payroll and related cost savings, mitigated the impact to its earnings, while the reopening of business in UK since mid-May and progressive easing of pandemic restrictions across the region had helped its UK and Egypt operations recover.

Notably, the group’s associate, Empire Resorts Inc, had registered marked improvements in its operating performance, following the full relaxation of Covid-19 restrictions since June, with gross gaming revenue at Resorts World Catskills (RWC) also exceeding pre-pandemic levels.

For the nine months ended Sept 30, 2021, Genting Malaysia almost halved its net loss to RM1.12 billion, from RM2.02 billion in the same period last year, despite revenue shrinking to RM2.27 billion, from RM3.49 billion. Nine-month loss per share decreased to 19.83 sen, from 35.79 sen.

The group said it is cautiously optimistic on the near-term prospects of the leisure and hospitality industry but remarked that the tourism industry is expected to continue recovering with increasing vaccination rates and easing of border crossing restrictions worldwide.

“The introduction of the 12th Malaysia Plan, with the tourism industry as one of the key focus areas, will augur well for the group as a leading player in the leisure and hospitality sector in Malaysia and the region. As for the regional gaming market, the introduction of vaccinated travel lanes between certain countries will provide a positive catalyst for industry players,” said Genting Malaysia.

The group said it is encouraged by the positive reception to the resumption of business at Resorts World Genting since Sept 30, and will ramp up operational capacity by leveraging its existing assets, while preparing for completion and opening of its long-awaited Genting SkyWorlds theme park by the end of 2021 in Malaysia.

Genting Malaysia also said it will pursue growth opportunities to strengthen its market leading position in New York.

“This includes the development of Empire’s new video gaming machines facility, Resorts World Hudson Valley in Orange County, New York, which is targeted to open in the summer of 2022.

“More recently, the New York State Gaming Commission had selected nine operators, including Empire, to receive mobile sports betting licences to operate in the state. This latest development will enable the group to expand its suite of product offerings to customers in New York. Meanwhile, the group will continue to maximise synergies between RWNYC and RWC to drive business volume and improve the overall profitability of its US operations,” its statement wrote on prospects of its US business.

Genting Malaysia shares closed four sen or 1.31% down at RM3.01 on Thursday, with a market capitalisation of RM17.87 billion.

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