Genting Berhad posted double-digit revenue and profit growth at its flagship resorts in Singapore and Malaysia in the latest quarter, reaching new heights.

Genting Berhad, the conglomerate headquartered in Malaysia, generated total revenue of RM6.1 billion (US$1.3 billion/€1.2 billion/£1.0 billion) from its leisure and hospitality division for the year. three months until September 30, 2023. This was an increase of 27% compared to the third quarter of 2022.

Double-digit growth was recorded in each of its geographical zones, including its two largest properties in Malaysia and Singapore.

Tourism recovery is driving growth for Genting

Resorts World Sentosa (RWS) in Singapore recorded 42% year-on-year growth, posting a total revenue of RM2.4 billion during the period. The resort continued to benefit from the ongoing recovery in the travel and tourism sector.

In Malaysia, Resorts World Genting (RWG) revenue rose 20% to RM1.7 billion. Genting said this was primarily due to higher business volumes in RWG’s gaming and non-gaming segments.

Sales in the US and Bahamas zone rose 16% to RM1.5 billion, with strong performances from Resorts World properties in New York City, Las Vegas and Bimini.

Resorts World Las Vegas achieved a new revenue and EBITDA record in 3Q23. The better performance was due to continued growth in the convention business, strong casino performance and the strengthening of the US dollar. Hotel occupancy and average daily rate were 91.1% and $246, respectively, in the third quarter, compared to 86.4% and $232, respectively, in the third quarter of 2022.

RW Bimini’s operating performance improved with higher revenues due to the easing of travel restrictions since June 2022, resulting in a higher number of cruise calls, which had a positive impact on revenues.

The UK and Egypt zone also benefited from higher business volumes, where revenue increased by 26% to RM495.0 million.

Genting Berhad group’s total revenue, including its plantation, energy and real estate divisions, rose 20% year-on-year to RM7.4 billion.

Genting’s earnings were boosted by higher sales

The leisure and tourism division posted a profit of RM2.4 billion, up 43%. Singapore’s profit rose 47% to RM1.2 billion, while Malaysia rose 25% to RM714.0 million. The USA and Bahamas and UK and Egypt zones increased by 76% to RM370.4 million and 34% to RM99.1 million respectively.

Genting did not provide detailed details on spending by sector, but overall adjusted EBITDA rose 33% to RM2.7 billion in the quarter. Total cost of sales for all divisions increased from RM4.2 billion to RM4.9 billion.

Higher EBITDA was recorded in Malaysia, the UK and Egypt as well as the US and the Bahamas, mainly due to higher sales. However, the increases in individual regions were partially offset by higher operating costs in the third quarter.

Strong growth over the year for Genting

Genting Berhad’s leisure and hospitality division has had a successful year so far. Revenue rose 33% to RM16.2 billion in the nine months to September 30. Sales in Singapore are up 60% year-on-year, with double-digit increases also in Malaysia as well as the US and the Bahamas.

Adjusted EBITDA for the year ended Sept 30 rose 46% to RM5.9 billion. Of this, RM2.7 billion came from Singapore and RM1.9 billion from Malaysia.

Looking forward, Genting said it remains cautious about the near-term prospects of the leisure and hospitality industry. However, in the longer term it is positive. The global economic recovery is expected to remain slow and uneven. Worsening geopolitical tensions, continued tight monetary policy and slowing growth momentum in certain major economies amid high inflation are expected to continue to pose headwinds to global growth.

“The positive outlook for international tourism is expected to continue, although macroeconomic concerns could continue to be a key factor in the effective recovery of the travel and tourism sector,” Genting added. “In the meantime, the regional gaming market is expected to continue to recover as airline capacity and flight connectivity improves in the region.”