Q3 results for Genting Malaysia show significant profit drop

A decline in revenue and high operating costs have led to Genting Malasia Bhd posting a 65.2% year-on-year loss in profit during Q3.

The Asian casino group generated MYR193.4m (US$47.0m), compared to MYR555.7m a year earlier according to a Thursday filing to Bursa Malasia.

Commenting on the results, the company said: “The Malaysian leisure and hospitality business reported lower revenue in third-quarter 2017 despite higher volume of business aided by the opening of new attractions and facilities under the Genting Integrated Tourism Plan (GITP). This was primarily due to lower hold percentage in the mid to premium players business segment.”

Genting Malaysia’s GITP initiative has been described by the group as a 10-year, MYR10bn master plan for a major revamp of Resorts World Genting and launch of the 20th Century Fox World Theme Park.

There was more positive news regarding third-quarter total revenue, which grew by 3% year-on-year to MYR2.27bn. However, adjusted EBITDA for the period fell 25% year-on-year to MYR437.9m, compared to MYR482.7m a year earlier.

Adjusted EBITDA in the firm’s leisure and hospitality segment in Malaysia fell 32.4% year-on-year to MYR336.0m, compared to MYR497.3m a year earlier. Adjusted EBITDA from UK operations rose 28% year-on-year to MYR53.8m, while those from the US and the Bahamas rose 181.1% year-on-year to MYR59.6m.

The firm put the increases down to favourable foreign exchange movement and higher revenue contribution from Resorts World New York City.