Genting Berhad, a Malaysian conglomerate, has witnessed a significant upswing in its financial performance. The resurgence of tourism in Singapore and Malaysia has catalyzed a remarkable revenue spike in its flagship resorts. The latest quarter results reflect a thriving leisure and hospitality sector, with substantial growth across various geographic zones.
In a recent financial disclosure, Genting Berhad, the renowned Malaysian conglomerate, reported a substantial increase in revenue and earnings. The company's flagship resorts in Singapore and Malaysia have experienced remarkable growth, contributing to a positive financial outlook.
Tourism Recovery Drives Growth for Genting
The company's Resorts World Sentosa (RWS) in Singapore reported a year-on-year growth of 42%, amassing RM2.4 billion in revenue. This growth is attributed to the sustained recovery of the travel and tourism industry. Similarly, Resorts World Genting (RWG) in Malaysia saw a 20% revenue increase to RM1.7 billion, driven by heightened activity in both gaming and non-gaming sectors.
The US & Bahamas zone also showed a revenue increase of 16% to RM1.5 billion, with strong performances in New York City, Las Vegas, and Bimini. Resorts World Las Vegas achieved record-breaking revenue and EBITDA in Q3 2023, bolstered by its expanding convention business, robust casino performance, and a strengthening US dollar.
Genting's Earnings Boosted by Higher Revenues
The leisure and tourism division of Genting Berhad posted a profit of RM2.4 billion, up 43% from the previous year. The profit from Singapore rose by 47% to RM1.2 billion, while Malaysia saw a 25% increase to RM714.0 million. The US & Bahamas and UK & Egypt zones also reported significant profit increases.
Despite not providing detailed information on expenses, Genting's overall adjusted EBITDA rose 33% to RM2.7 billion for the quarter. However, these gains were somewhat offset by higher operating expenses in Q3.
Strong Growth Throughout the Year for Genting
For the nine months leading up to 30 September, Genting Berhad's leisure and hospitality division reported a 33% increase in revenue, reaching RM16.2 billion. Singapore's revenue saw a 60% year-on-year increase, with Malaysia and the US & Bahamas also showing strong growth. The adjusted EBITDA for the year increased by 46% to RM5.9 billion.
Genting Berhad Enjoys Revenue Spike as Tourists Return to Singapore, Malaysia
While Genting Berhad remains cautious about the short-term outlook of the leisure and hospitality industry, it is optimistic about the longer term. The company acknowledges the challenges posed by global economic factors, including geopolitical tensions, tight monetary policy, and high inflation. Nonetheless, Genting anticipates a sustained positive trend in international tourism, with regional gaming markets expected to recover as airline capacities and connectivity improve.
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