Genting Berhad reported a 283.3% increase year-onyear in its net profit for Q1, after revenue grew by 27.6% due to growth at the Leisure and Hospitality division.
Group revenue for the three months through to 31 March at Genting Berhad hit RM7.43bn (PS1.24bn/EUR1.45bn/$1.58bn). The RM7.43bn is more than double the RM5.82bn of Q1 last year.
Leisure and Hospitality and Plantation were the two divisions that saw the most growth, but the latter was the one responsible for the increase in revenue. Leisure and Hospitality revenue increased 35.7% during Q1, while Plantation revenues only increased 1.6%.
The overall growth in revenue was so significant that it drove the net profit to almost triple its previous level. The quarter saw an increase of 40.4% in EBTDA adjusted.
Genting Berhad achieves global success
Leisure and Hospitality revenue in Q1 was RM6.48bn compared to RM4.78bn by 2023.
Resorts World Sentosa in Singapore, which operates Resorts World Sentosa, again produced the highest revenue of RM2.76 billion. Genting said it benefited from the increased tourism and visitors during Chinese New Year. The report also highlighted the relaxed visa rules between China and Singapore, which came into effect on February 20, 2024.
Resorts World Genting, in Malaysia had a 24.6% increase of revenue at RM1.75bn. This is due to a higher volume of business from the gaming and non-gaming sectors.
Genting’s revenue grew 25.5% in Egypt and the UK, bringing it to RM442.4m. This was due to a higher volume of sales.
In the US and Bahamas operations generated RM1,58bn total revenue in Q1 – an increase of 7.0% compared to 2023. The three resorts are Resorts World New York City (including Resorts World Las Vegas), Resorts World Las Vegas and Resorts World New York City.
Genting reports higher revenues in this region due to improved performance at Resorts World New York City, Bimini and other locations. Genting has said that it is continuing to improve its position in Las Vegas. Hotel occupancy rates are slightly down, but the average daily rate increased by $298.
What else happened in Q1?
The Plantation segment generated RM574.7m in revenue, excluding Leisure and Hospitality. Revenue from oil palm plantations increased 6.7%, to RM529.2m. However, revenue from downstream manufacturing fell 12.3%.
Other power revenue decreased by 39.6% as a result of reduced production at the Banten Plant, Indonesia after scheduled maintenance.
Oil and Gas revenues increased by 50% and property revenue by 24.0%, while revenue from other activities and investments declined by 25.7%.
The Q1 Net Profit is nearing RM1.00bn
Genting Berhad didn’t disclose all the details of its costs for that period. The company did however disclose its Q1 profit and earning.
After accounting for some costs, the adjusted EBITDA was RM2.57bn. This left a profit before tax of RM1.38bn. It is up 143.0% from the first quarter last year.
Genting Berhad has paid RM381.8m of tax in the last 12 months. It was therefore left with a profit net of RM998.6m. This is almost triple the RM295.2m it posted the year before.
The earnings per share reached RM15.29 during Q1 compared with RM2.55 in 2023.
