Despite the lackluster performance of its international operations, casino operator Genting Malaysia Berhad (Genting BHD) managed to pull off a 15.8 percent net profit growth in the first three months of 2018.
Figures from Genting BHD showed that its net profit rose to MYR342.1 million (US$86 million) compared to MYR323.9 million ($81.4 million) in the prior-year period, with its flagship integrated resort Genting Malaysia leading the revenue rally.
The Malaysian-listed company’s total revenue and profit before tax (PBT) saw some improvements at the start of the year, climbing 8 percent and 15 percent to MYR2.4 billion ($603.26 million) and MYR397.5 million ($99.9 million) respectively. Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) grew by 8 percent to MYR607.7 million ($152.75 million).
The group’s Malaysian business did the heavy financial lifting for its gaming segment, growing 19 percent to MYR1.6 billion ($402.18 million).
The successful first quarter was boosted by the opening of new facilities and attractions under the Genting Integrated Tourism Plan (GITP). Tourist arrivals at Genting Malaysia grew by 26 percent to 6.5 million while Resorts World Genting’s hotels maintained a strong 96 percent occupancy rate.
The home country gains were offset by the revenue declines in UK, Egypt, United States and the Bahamas. Lower business volume and hold percentage from premium segments pulled down revenue in the UK and Egypt by 12 percent to MYR54.9 million ($13.8 million).
In the U.S. and the Bahamas, revenue fell to MYR346.4 million ($87.07 million) as the U.S. dollar weakened against the Malaysian ringgit. EBITDA of the U.S. and Bahamas segment, however, improved by 57 percent to MYR64.8 million ($16.29 million).
Moving forward, Genting BHD expressed confidence in its future growth and the potential of its leisure and hospitality business as the global economy picks up. In Malaysia, Genting said that it remained focused on the on-going development of the GITP.
Genting BHD has been preparing to roll out the new Skytropolis indoor theme park and the highly anticipated Twentieth Century Fox World Theme Park. It also has plans to beef up its database marketing efforts to optimize yield management and improve operational efficiencies and service delivery at the resort.
In the UK, Genting will continue its efforts to stabilize operations and grow business volumes at Resorts World Birmingham.
Genting BHD is also focusing on the $400 million expansion of Resorts World Casino New York City, which continues to lead gaming revenue in the Northeast US region despite increased regional competition.
