Genting Berhad, the Malaysian multinational corporation known for its diverse ventures in the gaming and entertainment industry, reported a significant decline in revenue and profit for the third quarter of 2024. The company attributed these results to multiple challenges, including economic uncertainty, extreme weather conditions, and operational expenses across its leisure and hospitality divisions.

Resorts World Las Vegas (RWLV), Genting’s flagship property in the United States, experienced its weakest quarter in two years. Revenue dropped to $177 million, a sharp decline from $218 million in the second quarter, while EBITDA fell dramatically from $50 million to $16 million. According to a statement released by Genting and cited by Inside Asian Gaming, the dip was influenced by an “abnormally hot summer in Las Vegas and economic uncertainty in an election year.”

Hotel occupancy rates at RWLV also took a hit, decreasing from 91.1% in Q3 2023 to 85.1%, alongside a slight dip in average room rates from $246 to $244. Despite these setbacks, Genting expressed optimism for future growth, citing planned projects such as new dining and entertainment options, retail expansions, and performances at the Resorts World Theatre. These initiatives are expected to bolster foot traffic and visitor engagement in the coming months.

The property remains focused on expanding its casino and resort database to attract high-net-worth customers and encourage repeat visits. It also aims to strengthen its ties with convention groups and enhance offerings in dining and entertainment to drive operational efficiency.

Challenges Across Global Properties

The challenges faced at RWLV were echoed across Genting’s broader portfolio, according to The Edge Malaysia. Revenue for the group fell 11.2% year-on-year to MYR6.54 billion ($1.46 billion), while adjusted EBITDA dropped 15% to MYR1.86 billion ($418 million). The leisure and hospitality division, which includes properties in Malaysia, Singapore, and the United States, was particularly affected.

Resorts World Sentosa (RWS) in Singapore saw reduced revenue and EBITDA due to lower VIP rolling volumes and win rates. Resorts World Genting (RWG) in Malaysia also reported lower EBITDA, largely owing to increased operating expenses. However, Genting’s properties in the UK and Egypt saw improved performance, benefiting from higher business volumes.

In the United States, Resorts World New York City and Resorts World Bimini faced challenges, including lower revenue and increased payroll-related expenses.

Broader Business Impacts and Strategic Adjustments

In addition to the leisure and hospitality sector, Genting faced hurdles in its power and plantation segments. The power division’s pre-tax profit declined due to extended maintenance periods at the Banten plant in Indonesia, while the plantation segment reported a slight dip in pre-tax profit due to lower sales volumes of palm products.

On a more positive note, the company’s “Investments and Others” segment recorded a substantial pre-tax profit of MYR418.9 million, compared to a loss in the same period last year. This turnaround was primarily attributed to unrealized foreign exchange gains on Genting Malaysia’s US dollar-denominated borrowings.

Genting remains optimistic about the outlook for international tourism, highlighting improved air connectivity and growing demand as key drivers for recovery in the regional gaming market. The company plans to enhance visitor experiences at its properties, with new ecotourism attractions in Malaysia slated for 2025 and ongoing transformations at Resorts World Sentosa in Singapore.