Travel restrictions

Genting Malaysia’s net loss in 1QFY22 narrows as travel restrictions ease

KUALA LUMPUR (May 26): Genting Malaysia Bhd’s net loss for the first quarter ended March 31, 2022 (1QFY22) narrowed to RM126.53 million from RM483.59 million a year ago, while revenue nearly tripled to RM1.72 billion from RM623.35 million.

As a result, the loss per share fell from 8.55 sen to 2.24 sen.

In a stock exchange filing, it said the rise in revenue was supported by RM621 million, more than three times the revenue from leisure and hospitality activities in Malaysia, compared to a year ago. This was primarily driven by a higher volume of activity in the gaming and non-gaming segments, due to the easing of travel restrictions during 1QFY22.

He said 1QFY21 revenue was impacted by the temporary closure of Resorts World Genting (RWG) for nearly a month, followed by the reimposition of travel restrictions across the country caused by the negative impact of the pandemic. of Covid-19.

Meanwhile, the group saw revenue from Leisure and Hospitality activities in the United Kingdom (UK) and Egypt increase by RM355.1 million, from RM40.2 million to RM395, RM3 million, primarily due to the nationwide lockdown in the UK with effect from early January 2021 following the Covid-19 pandemic, where all land-based casinos and resort operations were temporarily closed during of 1QFY21. The group’s land-based casinos in the UK have reopened since mid-May 2021.

The group also recorded a 40% increase in revenue in leisure and hospitality activities in the United States of America (US) and the Bahamas, mainly due to the strong operational performance of Resorts World New York City (RWNYC) since the full lifting of Covid -19 restrictions in June 2021. As of 1QFY21, RWNYC has been operating with limited hours of operation in accordance with a government directive.

The group said it was positive on the longer-term outlook for the leisure and hospitality industry as international tourism recovers.

“International tourism is expected to continue its gradual recovery, although weakening economic sentiment may delay the return of confidence in global travel.

“Nevertheless, the gradual reopening of borders and the continued easing of Covid-19 restrictions will improve optimism surrounding the tourism, leisure and hospitality industries, including the regional gaming sector,” he said. he declares.

In Malaysia, he said the group will continue to focus on ramping up operations at the RWG, following further easing of Covid-19 restrictions in the country and reopening of national borders from April 1, 2022.

With increasing visitor numbers at the resort, the group will also focus on maximizing returns contributions by intensifying database analytics and targeted marketing efforts to grow key business segments.

At the same time, the group will continue to improve overall operational efficiency and service delivery to elevate the quality of customer experience at RWG.

In the UK, sustaining the group’s recovery momentum remains the group’s top priority following the lifting of all Covid-19 related travel restrictions in the country.

Although the group is aware of the challenges inherent in the current operating environment, the group is convinced that the operational improvements implemented over the previous years, in particular the improvement of the customer proposition and the optimization of the cost structure of the group, will position the group in a good position for the coming year. .

In the United States, the group’s operations continue to be resilient and the group remains focused on strengthening its position as the leading gaming operator in the Northeast region of the United States, in an increasingly competitive landscape.

Marketing efforts will be intensified to grow the group’s US customer base, while leveraging RWNYC’s latest upgraded facilities and Empire’s expanded product offerings to drive business volume and overall operating efficiencies Americans of the group.

Meanwhile, the development of Resorts World Hudson Valley, a new video game machine facility located in Orange County, New York, is progressing well and the focus continues to be on its timely completion.

In the Bahamas, the group will continue to implement various cross-marketing initiatives, in addition to capitalizing on the various world-class amenities available at the resort to drive visits and spend at Resorts World Bimini.

Genting Malaysia closed one sen or 0.33% lower at RM2.98 on Thursday (May 26th), valuing the group at RM17.75 billion. Since the beginning of the year, the counter has increased by 2.41%.