KUALA LUMPUR: Genting Bhd
's performance for the remainder of the 2024 financial year may be influenced by factors such as global economic growth, geopolitical risks, and macroeconomic movements.
The group said the global economy is expected to continue growing, though risks from geopolitical developments may persist.
“In Malaysia, the expansion of the economy is expected to be supported by the continued recovery in external demand and domestic expenditure. However, the impact on inflation is expected to be influenced by domestic policy measures.
“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,” Genting said in a statement.
In the second quarter ended June 30, Genting’s net profit jumped 49.3% to RM239.6mil, or earnings per share of 6.22 sen compared with RM160.5mil, or 4.17 sen posted in the year-ago quarter.
Revenue for the quarter stood at RM6.86bil, up 3% compared with the previous year’s corresponding quarter’s (2Q23) revenue of RM6.66bil.
Genting said the increase in revenue was contributed mainly by the leisure & hospitality division.
Its adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) for 2Q24 was RM2.2bil, an increase of 11% compared with RM1.99bil in 2Q23
Resorts World Sentosa (RWS) recorded lower revenue and EBITDA in 2Q24, mainly due to geopolitical headwinds, together with high transport and accommodation costs have dented growth.
Resorts World Genting (RWG) recorded higher revenue in 2Q24 over 2Q23 mainly due to higher volume of business from gaming and non-gaming segments. However, a lower EBITDA was recorded primarily due to the higher operating expenses in 2Q24.
Genting noted that its leisure and hospitality businesses in the US and Bahamas include Resorts World New York City, Resorts World Bimini, and Resorts World Las Vegas. RWNYC and RW Bimini saw higher revenue due to better operating performance. Ebitda increased mainly from higher revenue, though this was partially offset by rising operating and payroll expenses.
Meanwhile, in 2Q24, the plantation division’s revenue fell due to lower sales volume in downstream manufacturing, but higher palm product prices helped offset this decline. Ebitda increased thanks to these higher prices, which outweighed the lower fresh fruit bunches (FFB) production. The downstream manufacturing segment also saw higher Ebitda due to improved margins.
In the first half to June 30 (1H24), Genting’s net profit surged to RM828.5mil compared with RM258.6mil last year while revenue rose 14.5% to RM14.3bil against RM12.5mil a year ago.
The board of directors has declared an interim single-tier dividend of 6.0 sen per ordinary share for 1H24 compared with 6.0 sen per ordinary share for 1H23.
Separately, Genting Malaysia Bhd’s net profit increased to RM82.24mil in 2Q24, bringing its net profit for the first half of the year to RM140.02mil.
Revenue increased by 8% to RM2.67bil, bringing the total for six months to RM5.43bil.
Genting Malaysia also declared an interim single-tier dividend of 6.0 sen per ordinary share in respect of the financial year ending Dec 31, 2024, payable on Oct 7, 2024.
