Casino operator Genting Malaysia Berhad, a subsidiary of Genting Group, has reported 65.2 percent fall in third-quarter profits. Genting Malaysia Berhad operates Resorts World Genting, Malaysia’s only casino resort, besides running casinos in the United States, the United Kingdom and the Bahamas.
The Malaysian casino group generated MYR 193.4m (US$47.0m), compared to MYR 555.7m a year earlier according to a filing to Bursa Malasia. The total revenue of Genting Malaysia in the third quarter of 2017 grew by 3 percent year-on-year, to MYR 2.27 billion.
However, adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the period fell 25 percent year-on-year, to MYR 437.9 million, compared to MYR 482.7 million a year earlier. The adjusted EBITDA in the country's leisure and hospitality segment fell 32.4 percent year-on-year, to MYR 336.0 million, compared to MYR497.3 million a year earlier.
According to the company report, the Malaysian leisure and hospitality business has been slow in third-quarter 2017 amid higher volume of business. The opening of new attractions and facilities under the Genting Integrated Tourism Plan (GITP) has not helped due to lower hold percentage in the mid to premium players business segment.
The institution’s analysts Tushar Mohata and Alpa Aggarwal have singled out a below-theoretical win rate in the VIP business in Malaysia as the reason for the dismal Q3.
Genting Malaysia is banking on the upcoming GITP project which is a multi-phase 10-year initiative. MYR 10-billion master plan is a major revamp for the Resorts World Genting. The spokesperson from Genting Malaysia said that it is “looking forward to the roll out” of the 20th Century Fox World Theme Park, along with the new indoor theme park in 2018 to come up as a part of the GITP.
Unlike Malaysia, the overseas operations have been favourable due to positive foreign exchange movement and higher revenue contribution from Resorts World New York City.