Group revenue for the three-month period ending on 31 March at Genting Berhad reached an impressive RM7.43 billion (£1.24 billion/€1.45 billion/$1.58 billion), significantly surpassing the RM5.82 billion reported in the first quarter of the previous year. This dramatic increase signals a strong financial performance across the corporation’s multifaceted operations.
The key drivers behind this revenue growth were Genting’s two main sectors: Leisure and Hospitality, and Plantation. However, it was the Leisure and Hospitality division that notably propelled the revenue surge, experiencing a robust 35.7% growth in Q1. In contrast, the Plantation segment saw a modest rise of 1.6%.
The substantial uptick in overall revenue had a notable impact on Genting’s net profit, which nearly tripled in the first quarter. The net profit escalation was accompanied by a 40.4% increase in adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the period.
Delving deeper into the performance of the Leisure and Hospitality division, the segment recorded a remarkable revenue of RM6.48 billion, up from RM4.78 billion in 2023. This sector includes the company’s globally recognized resorts and casinos, which have shown impressive returns.
Resorts World Sentosa in Singapore continued to be the crown jewel of Genting’s operations, pulling in RM2.76 billion, a 73.4% increase from the previous year’s RM2.77 billion. This surge can be attributed to a higher number of visitors and increased spending during the Chinese New Year festive season, coupled with the easing of visa regulations between China and Singapore, which took effect in February 2024.
In Malaysia, Resorts World Genting also showed significant performance, recording a 24.6% increase in revenue to RM1.75 billion. According to the group, this growth was driven by higher business volumes in both gaming and non-gaming segments.
Beyond the Asian market, Genting reported strong revenue growth in the UK and Egypt, collectively rising 25.5% to RM442.4 million, thanks to an increased volume of business activities in these regions.
In the Americas, including the US and the Bahamas, operations generated a combined Q1 revenue of RM1.58 billion, marking a 7.
.0% increase compared to 2023. This figure encompasses various properties such as Resorts World New York City, Resorts World Bimini, and Resorts World Las Vegas. For this region, Genting highlighted increased revenue across the New York City and Bimini locations, driven by improved operating performances. In Las Vegas, despite a slightly lower hotel occupancy rate, the average daily rate rose to $298, reinforcing the group’s strategy to bolster its market position.
Looking at the Plantation segment, revenue hit RM574.7 million. This included a 6.7% rise in oil palm plantation revenue to RM529.2 million, while revenue from downstream manufacturing witnessed a setback, declining by 12.3%.
The Power division faced a downturn, with revenue plummeting 39.6% due to reduced generation from the Banten Plant in Indonesia, which underwent scheduled maintenance during the period.
On a brighter note, Property revenue climbed by 24.0%, and the Oil and Gas segment saw a significant rise of 50%. However, revenue from investments and other activities declined by 25.7%.
Genting Berhad has not disclosed the full breakdown of costs for the quarter. Nevertheless, it provided key financial metrics indicating a robust performance. The group’s adjusted EBITDA increased by an impressive 40.2% to RM2.57 billion. After accounting for various costs, the pre-tax profit stood at RM1.38 billion, reflecting a substantial 143.0% increase from the same period last year.
Tax expenses for the quarter totaled RM381.8 million, leaving the group with a net profit of RM998.6 million, nearly tripling the RM295.2 million reported in the first quarter of the previous year. This financial success translated into earnings per share, which soared to RM15.29 in Q1, up from RM2.55 in the previous year.
In summary, Genting Berhad’s accomplished performance in Q1 is a testament to its strategic focus and resilience in the face of global market challenges. With the Leisure and Hospitality sector spearheading growth and significant contributions from its other divisions, Genting Berhad looks poised for continued success in the upcoming quarters.
