Genting Malaysia Returns To Profit In Final Quarter Of 2021

Genting Malaysia Berhad, the renowned global leisure and hospitality company, has announced that it has recorded good results and returned to profitability in the final quarter of 2021.

The company reported a net profit of 124 million Malaysian Ringgit for the fourth quarter of 2021, which equates approximately to 29.5 million U.S. dollars. The result is especially good considering that the similar period of the previous year resulted in a loss.

Overall, the group’s revenue amounted to 1.89 billion Malaysian Ringgit, an increase of 81 percent compared to the same period of 2020. Adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA) also grew by 333 percent to 738.1 Malaysian Ringgit.

The fourth quarter of 2021 was especially profitable for Malaysia’s Resorts World Genting, the facility recorded revenue of 961.9 million Malaysian Ringgit, a figure which represents a 49 percent increase year-on-year.

The integrated resort was closed for big parts of 2021 due to government restrictions related to the novel coronavirus pandemic, but it reopened on 30 September 2021. Moreover, interstate travel restrictions were lifted on 11 October, and that drove more demand to the resort.

The company also recorded solid results from its operations abroad. In the United Kingdom and Egypt, revenue quadrupled to 433.2 million Malaysian Ringgit. Moreover, adjusted earnings before interest, taxes, depreciation, and amortization amounted to 178.8 million Malaysian Ringgit as restrictions eased in both regions.

In the United States of America and Bahamas, the company’s operations recorded a revenue increase of 43 percent, gathering 350.7 million Malaysian Ringgit. Most of that amount was generated by Resorts World New York City, which saw a strong rebound in demand.

However, for the full 2021 fiscal year, Genting Malaysia saw its revenue decline by 8 percent to 4.16 billion Malaysian Ringgit, even though adjusted EBITDA more than doubled to MYR727 million. The company’s net loss went down from MYR2.36 billion in 2020 to MYR1.15 billion in 2021.

For 2022, Genting Malaysia is expected to see a return to profitability for its operations in 2022, at least that is what the experts at RHB Investment Bank have revealed during the first days of the year.

Source: . Inside Asian Gaming. February 25, 2022.