The group saw net profit declining by 57% year-on-year to RM223.8mil.
KUALA LUMPUR: Genting Bhd
believes the outlook for international tourism is expected to remain broadly positive, driven by strengthening global demand, improved air connectivity and the ongoing recovery in key markets.
As such, it said this momentum is expected to support the continued recovery of the regional gaming market, although the group commented that uneven prospects across major economies worldwide means downside risks to its growth outlook remain amid new developments in the global environment.
Releasing its results for the third quarter ended Sept 30 (3Q24), the group saw net profit declining by 57% year-on-year (y-o-y) to RM223.8mil, as revenue slipped 11.2% to RM6.54bil.
Genting reported that the lower turnover was due to a decrease in revenue to its leisure and hospitality division, with Resorts World Sentosa recording lower revenue and adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) in the current quarter, mainly driven by lower VIP rolling volume and win rate.
Genting’s leisure and hospitality businesses overseas, which included Resorts World New York City and Resorts World Bimini, also saw lower revenue as well as higher operating and payroll related expenses.
Concurrently, Resorts World Las Vegas (RWLV) saw hotel occupancy and average daily rate dip y-o-y, which the group attributed to an abnormally hot summer in Las Vegas and economic uncertainty in an election year which impacted the quarterly results.
“Our plantation division’s revenue was lower in the current quarter, primarily due to lower sales volume in the downstream manufacturing segment, partly mitigated by higher palm product prices.
“Consequently, a lower adjusted Ebitda was recorded mainly due to lower sales volume of palm products leading to higher inventory levels.”
Overall, it said the lower adjusted Ebitda contributed to the decreased 3Q24 profit, coupled with higher property, plant and equipment written off, which were partly mitigated by lower depreciation in the current quarter.
On the other hand, the group’s performance for the nine months ended September (9M24) was brighter, as net profit jumped 35% y-o-y to RM1.05bil, with turnover growing 5% to RM20.8bil.
Genting said the improved cumulative showing was primarily attributed to improved revenue and higher volume of business across its leisure and hospitality division, especially observing that a mix of concert headliners and sporting events, paired with a robust convention quarter drove strong visitation to RWLV’s property.
“The plantation division’s revenue was lower in the current nine months, primarily due to lower sales volume in the downstream manufacturing segment, partly mitigated by higher palm product prices.
“However, adjusted Ebitda was higher on the back of higher palm product prices, which more than compensated for the lower fresh fruit bunch production,” said the group.
In general for 9M24, Genting said the higher profit flowed down from higher adjusted Ebitda, coupled with lower net fair value loss, lower net finance cost and a share of profit in the current nine months.
