Genting Malaysia doubles Q2 profit to $14.6 million, driven by revenue growth across markets

Genting Malaysia Berhad reported a strong financial performance for the second quarter of 2024, with profit more than doubling to MYR62.8 million ($14.6 million), driven by growth across its Malaysia, UK, and US gaming markets.

Total revenue for the quarter increased by 8% year-on-year to MYR2.67 billion ($619 million). In Malaysia, the leisure and hospitality business saw a 5% revenue increase to MYR1.62 billion ($376 million), while revenue in the UK and Egypt grew by 20% to MYR468.8 million ($109 million). The US and Bahamas markets also posted an 11% revenue rise to MYR527.8 million ($123 million).

Group-wide Adjusted EBITDA soared 72% year-on-year to MYR770.4 million ($179 million), supported by net foreign exchange translation gains.

“These improvements were mainly driven by the higher volume of business registered at RWG (Resorts World Genting) as travel demand from the wider region continues to grow,” Genting Malaysia said in a statement.

The company highlighted that its ongoing investment in new and refreshed products and lifestyle experiences in Malaysia is part of its strategy "to solidify its position as a premier tourism destination."

The board declared an interim dividend of six sen per share for FY2024, payable on October 7.

Looking ahead, Genting Malaysia expressed cautious optimism about the near-term prospects of the leisure and hospitality industry, while remaining positive about the longer-term outlook. The company emphasized its focus on leveraging its integrated resort offerings and enhancing digital platforms to meet evolving customer needs as regional travel recovers.

“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,” the company added.

Nomura analysts Tushar Mohata and Alpa Aggarwal noted that the results were a "positive surprise," given the seasonal weakness in gaming volumes and the full quarter impact of a sales tax hike and the closure of two older casinos.

Despite the strong quarterly performance, Genting Malaysia’s stock has declined by 6% year-to-date, closing at RM2.52 on Thursday, giving the company a market capitalization of RM14.96 billion.