Strong Q2 makes up for Genting Malaysia’s ‘soft’ Q1
An increase of revenue and EBITDA has helped Genting Malaysia recover from a more disappointing Q1.
Key points:
– 9% Q2 year-on-year revenue increase to RM2.9bn (US$0.7bn)
– Putting Q2 in tandem with the disappointing Q1, H1 revenue levels out with a 1% uptick
– UK results include helpful contributions from new Genting Casino Stratford
Genting Malaysia Berhad has made up much of the ground it ceded in Q1 with a healthy rebound in Q2.
The opreator attributed the “softer performance” of Q1 to the timing of the festive season, but celebrated higher business volumes in the financial quarter ending 30 June.
An overall 9% year-on-year revenue increase in Q2 saw the company raise total revenue of RM2.9bn (US$0.7bn) and restore some parity to the group’s overall finances.
While the casino operator earns over 62% of its total revenue from Malaysian channels, the rate of growth across each of the markets it’s active in was quite consistent.
UK and Egypt exhibited a 9% revenue uptick and US operations were the same, while Malaysia reported a 10% increase.
Putting the disappointing results of Q1 and more encouraging figures of Q2 together and the full H1 picture is steady, with the total revenue of RM5.5bn representing a 1% increase on last year.
The group’s outlook for the future, particularly in Malaysia is cautiously optimistic: “Despite prevailing trading environment uncertainties, the global tourism outlook is expected to remain broadly positive. This momentum is expected to support the continued growth of the regional gaming market.”
Good to know: In the US, though revenue was up, the restructuring and consolidation of Empire Resorts Inc and subsidiaries ramped up operating and payroll expenses, resulting in a 33% decrease in EBITDA
In the UK, much of the optimism comes as a result of the acquisition of the new Genting Casino Stratford, which it says has strengthened its market presence and already offered strong contributions.
Recent legislation change has also meant that the operator can increase its gaming machine allocations in casinos moving forward, which ought to generate further growth
Though improved leisure and hospitality revenue in Q2 played a big role in remedying the blows of Q1, an adjusted EBITDA increase of 24% for H1 is inflated by Forex gains of RM235m on Getning Malaysia’s USD denominated borrowings.
Without the impact of these currency gains, H1 adjusted EBITDA would have been down 1%, reflecting the more balanced outcomes of the rest of the data.
One notable additional cost in the Q2 results was RM25m in redundancy costs, compared to RM0.9m in 2024.
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