Asian casino giant Genting Malaysia has released its unaudited financial results for the three months to the end of September showing a 65.2% drop year-on-year in overall profit to $47.13 million despite a 3.16% increase in total revenues to $553.23 million.
The operator behind the hill-top Resorts World Genting integrated casino resort near Kuala Lumpur, Genting Malaysia stated that its third-quarter adjusted earnings before interest, tax, depreciation and amortization fell by 24.8% year-on-year to $106.75 million due to ‘high operating costs and a decline in revenues’ alongside additional expenses tied to the ten-year and $2.43 billion ongoing renovation of its flagship Malaysian venue.
Genting Malaysia revealed that leisure and hospitality revenues from its home market during the three-month period decreased by 7.4% year-on-year to $329.83 million while its $81.91 million in adjusted earnings before interest, tax depreciation and amortization represented a fall of some 32.4%.
Also responsible for the Resorts World Bimini and Resorts World Casino New York City properties, Genting Malaysia declared that third-quarter leisure and hospitality revenues from its venues in the Bahamas and United States hit $88.55 million, which represented a swell of almost 13% year-on-year, while adjusted earnings before interest, tax depreciation and amortization improved by over 180% to $14.52 million.
Additionally the largest casino operator in the United Kingdom with over 45 properties, Genting Malaysia proclaimed that these venues pulled in leisure and hospitality revenues for the three months to end of September of $125.86 million, which was a 35.8% boost year-on-year, while their adjusted earnings before interest, tax depreciation and amortization of $13.11 million was 27.7% higher when compared with the same period in 2016.
Regarding the future, Genting Malaysia declared that it remains ‘optimistic on the growth potential of the leisure and hospitality industry in the medium to long-term’ due to continuing growth in the Malaysian economy and the recent ‘promising’ performance ‘by gaming operators in Macau and Singapore’. In the United States, it proclaimed that it had ‘maintained its steady business growth’ and intends to continue ‘intensifying its direct marketing efforts to drive visitations and frequency of play’ while embarking on a $400 million expansion of its Resorts World Casino New York City property.
Finally, Genting Malaysia stated that it has been ‘encouraged’ by its performance in the ‘premium player business segment’ in the United Kingdom and intends to move forward by strengthening its position and improving ‘business efficiency’ in the ‘non-premium player business’ vertical.