Genting’s second-quarter net profit jumped 49.3% year-on-year to RM239.6mil.
PETALING JAYA: Genting Bhd
’s performance for the remainder of the 2024 financial year (FY24) may be influenced by factors such as global economic growth, geopolitical risks and macroeconomic movements.
The gaming and hospitality 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 stated in a filing with Bursa Malaysia.
In the second quarter ended June 30 (2Q24), Genting’s net profit jumped 49.3% year-on-year (y-o-y) to RM239.6mil, or earnings per share (EPS) of 6.22 sen compared with RM160.5mil or an EPS of 4.17 sen posted in 2Q23.
Revenue for the quarter stood at RM6.86bil, up 3% y-o-y, with the increase mainly from the leisure and 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) in Singapore 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 y-o-y mainly due to higher volume of business from the gaming and non-gaming segments.
However, a lower Ebitda was recorded primarily due to the higher operating expenses in 2Q24.
Genting’s leisure and hospitality businesses in the United States and Bahamas include Resorts World New York City (RWNYC), Resorts World Bimini (RW Bimini) and Resorts World Las Vegas.
RWNYC and RW Bimini saw higher revenue due to better operating performance in the period. Ebitda increased mainly from higher revenue, though this was partially offset by rising operating and payroll expenses.
The group’s plantation division, Genting Plantations Bhd, saw revenue fall due to lower sales volume in downstream manufacturing but higher palm product prices helped offset this decline.
Its Ebitda increased thanks to the higher prices, which outweighed the lower fresh fruit bunch (FFB) production. The downstream manufacturing segment also saw higher Ebitda due to improved margins.
For the first half to June 30 (1H24), Genting’s net profit surged to RM828.5mil or EPS of 21.5 sen from a net profit of RM258.6mil or EPS of 6.7 sen in 1H23 while revenue rose 14.5% to RM14.3bil.
Genting declared an interim single-tier dividend of six sen per ordinary share for 1H24 matching the six sen per ordinary share dividend for 1H23.
Separately, Genting Malaysia Bhd’s net profit amounted to RM82.24mil or EPS of 1.45 sen in 2Q24, bringing its net profit for the first half of the year to RM140.02mil or an EPS of 2.47 sen.
Revenue increased by 8% year-on-year to RM2.67bil in 2Q24, bringing the total for the six months to RM5.43bil.
Genting Malaysia declared an interim single-tier dividend of six sen per ordinary share in respect of the financial year ending Dec 31, 2024, payable on Oct 7, 2024.
