Genting Malaysia Berhad has released its financial results for the second quarter of 2024, showcasing a robust performance across its various markets. Here are the key highlights:
- Revenue Growth: Total revenue for Q2 2024 increased by 8% year-on-year to RM2.67 billion ($619 million);
- Adjusted EBITDA: Adjusted EBITDA soared 72% year-on-year to RM770.4 million ($179 million), supported by net foreign exchange translation gains;
- Profit Increase: Profit before taxation (PBT) and net profit more than doubled, reaching RM203.2 million and RM62.8 million, respectively;
- Half-Year Performance: For the first half of 2024, Genting Malaysia’s revenue grew by 14% to RM5.43 billion, with adjusted EBITDA increasing by 37% to RM1.42 billion. The company reported a net profit of RM99.4 million, a significant turnaround from a net loss of RM15.1 million in the same period last year;
The company’s leisure and hospitality business saw revenue increases across various regions:
- Malaysia: Revenue increased by 5% to RM1.62 billion ($376 million);
- UK and Egypt: Revenue grew by 20% to RM468.8 million ($109 million);
- US and Bahamas: Revenue rose by 11% to RM527.8 million ($123 million);
The improved performance was driven by higher business volumes and enhanced operational efficiency. However, higher operating and payroll expenses affected EBITDA margins in some regions.
The board declared an interim single-tier dividend of 6.00 sen per ordinary share, reflecting the company’s commitment to providing sustainable returns to shareholders.
Outlook and strategies
Genting Malaysia expressed cautious optimism about the near-term prospects of the leisure and hospitality industry, while remaining positive about the longer-term outlook. Key strategies include:
- Malaysia: Focus on its integrated resort to capitalize on recovering regional travel demand;
- UK: Plans to expand market share and reorganize operations for greater efficiency;
- US: Emphasis on marketing initiatives to drive visitations and expand the customer database with RWNYC and its Empire assets;
The outlook for international tourism is expected to remain positive, underpinned by improving demand and enhanced air connectivity. Consequently, the regional gaming market is expected to maintain its recovery momentum.
| Region | Revenue Growth | Revenue (RM) | Revenue (USD) |
|---|---|---|---|
| Malaysia | 5% | 1.62 billion | $376 million |
| UK and Egypt | 20% | 468.8 million | $109 million |
| US and Bahamas | 11% | 527.8 million | $123 million |
| Total Q2 Revenue | 8% | 2.67 billion | $619 million |
This strong financial performance underscores Genting Malaysia’s resilience and strategic focus on enhancing its integrated resort offerings and digital platforms to meet evolving customer needs.
