PETALING JAYA: Genting Malaysia Bhd (GenM) posted an almost 15-fold surge in net profit for the third quarter ended Sept 30 (Q3 FY2023) to RM177.4 million from RM11.38 million a year ago as the leisure and hospitality industry rebounded with a vengeance.
Quarterly revenue rose 19.3% to RM2.71 billion from RM2.27 billion in the corresponding quarter last year, it said a filing with Bursa Malaysia today.
The leisure and hospitality business in Malaysia recorded higher revenue of RM285.4 million due to higher volume of business registered by Resorts World Genting’s gaming and non-gaming segments.
The leisure and hospitality business’ revenue in the UK and Egypt jumped RM101 million to RM494.9 million from RM393.9 million a year ago on higher volume of business, while the US and Bahamas’ revenue rose by RM48.8 million or 11% due to the higher contributions from Resorts World New York City (RWNYC), and improved operating performance of Resorts World Bimini (RW Bimini) in the Bahamas.
“Higher revenue was recorded by RW Bimini as a result of relaxation on travel restriction since June 19, 2022 leading to higher number of cruise calls,” it said.
For the nine months ended Sept 30, 2023 (9M FY2023), revenue was RM7.47 billion, an increase of RM1.3 billion from the corresponding period a year ago.
Net profit for its 9M FY2023 came in at RM197.15 million from a net loss of RM126 million in 9M FY2022.
On its prospects, the group remains cautious of the near-term outlook of the leisure and hospitality industry but is positive in the longer-term.
“The positive outlook for international tourism is expected to be sustained, although macroeconomic concerns could continue being a critical factor in the effective recovery of the travel and tourism sectors.
“Meanwhile, the regional gaming market is expected to continue recovering as airline capacity and air connectivity in the region improves,” it added.
Locally, GenM said it will continue to drive productivity improvements to strengthen the resilience of the business amid an increasingly challenging operating environment.
In the UK, it will continue to explore strategies to strengthen the resilience of its business, which include re-organising its operations to optimise efficiencies, whilst exploring opportunities to deliver growth.
As for the US, it remains steadfast in exploring opportunities to reinforce its competitive position in the region, which include developments surrounding the New York Gaming Facility Board’s plans for up to three casinos in New York State.
GenM shares closed 2 sen or 0.78% higher at RM2.58 with a market capitalisation of RM15.32 billion.