Genting Berhad posted a 283.3% year-on-year increase in net profit during Q1 after growth within its Leisure and Hospitality business pushed revenue up 27.6%.
Group revenue for the three months through to 31 March at Genting Berhad hit RM7.43bn (£1.24bn/€1.45bn/$1.58bn). This is comfortably ahead of the RM5.82bn in Q1 of last year.
The group saw growth across its two core divisions – Leisure and Hospitality and Plantation – although the revenue hike was driven be the former. Leisure and Hospitality hiked 35.7% in Q1, with Plantation revenue only edging up 1.6%.
Such was the impact of overall revenue growth that this drove net profit up almost three-fold in Q1. This was accompanied by a 40.4% increase in adjusted EBITDA for the quarter.
Global success for Genting Berhad
Breaking down revenue performance in Q1, Leisure and Hospitality hit RM6.48bn, up from RM4.78bn in 2023.
Operations in Singapore – Resorts World Sentosa – again saw the most revenue at RM2.76bn. This is 73.4% ahead of RM2.77bn last year, with Genting saying it benefitted from increased visitors and tourism spend during the Chinese New Year festive season. It also noted the relaxation of visa regulations between China and Singapore which took effect in February 2024.
Turning to Resorts World Genting in Malaysia, revenue was 24.6% higher at RM1.75bn. The group says this is mainly due to higher business volume from both gaming and non-gaming segments.
Away from Asia, Genting saw solid growth in the UK and Egypt, with revenue rising 25.5% to RM442.4m due to higher volume of business.
As for the US and Bahamas, operations here generated RM1.58bn in total Q1 revenue, an increase of 7.0% from 2023. This covers Resorts World New York City, Resorts World Bimini and Resorts World Las Vegas.
For this region, Genting notes higher revenue across the Resorts World New York City and Bimini locations on the back of improved operating performance. In Las Vegas, Genting said it continues to strengthen its position, with hotel occupancy rate slightly lower but average daily rate up at $298.
What happened elsewhere in Q1?
Away from Leisure and Hospitality, revenue from the Plantation segment hit RM574.7m. Oil palm plantation revenue climbed 6.7% to RM529.2m, although revenue from downstream manufacturing slipped 12.3%.
Elsewhere, Power revenue fell 39.6% due to reduced generation from the Banten Plant in Indonesia following scheduled maintenance.
Property revenue increased 24.0% and Oil and Gas revenue edged up 50%, but revenue from investments and other activity declined 25.7%.
Q1 net profit nears RM1.00bn
Genting Berhad did not disclose full details on cost for the period. It did, however, set out its profit and earnings for Q1.
Adjusted EBITDA increased by 40.2% to RM2.57bn – after accounting for certain costs, this left a pre-tax profit of RM1.38bn. This is 143.0% higher than in the opening quarter of last year.
Genting Berhad paid RM381.8m in tax during the period. As such, it was left with a net profit of RM998.6m, almost three times the RM295.2m posted in the previous year.
This carried over into earnings per share, with this reaching RM15.29 in Q1, compared to RM2.55 in 2023.
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