Genting Malaysia Reports Third Quarter Loss
Genting Malaysia Berhad, a branch of the Genting Group, disclosed their financial outcomes for the third quarter of 2021. They reported earnings of RM8.262 billion (GBP146.1 million/EUR172.8 million).
The leisure and hospitality sector was the primary contributor to earnings. However, earnings for Genting’s Resorts World in Genting Highlands, Genting and Langkawi in Malaysia were down RM1.16 billion year-over-year, reaching RM17.7 million.
This was primarily due to the closure of the Genting Highlands resort because of the COVID-19 lockdown in Malaysia. It only reopened on the last day of the reporting period, September 30, resulting in a 99.0% decrease in earnings.
The reopening of land-based casinos in the UK in May after the COVID-19 lockdown partially offset the Malaysian shutdown. Earnings from Genting UK’s Crockfords, Birmingham Resorts World and Crockfords Cairo in Egypt were RM4.06 billion, up 209.0%.
This was largely due to these properties being closed for most or all of the third quarter of 2020.
In the United States, earnings from Resorts World New York City and Resorts World Catskills, as well as Resorts World Bimini in the Bahamas, also increased from RM69.9 million in 2020 to RM3.642 billion in the third quarter of 2021.
New York vacation spots were shut down due to the widespread disease and only reopened in June of 2021.
Leisure and hotel business income totaled 787.9 million ringgit, a decrease of 43.0% compared to the same period last year.
Other property income was 20.3 million ringgit, an increase of 14.0%, while investment income grew by 1.6 million ringgit to 18.1 million ringgit.
On the spending side, the cost of goods sold was 891.8 million ringgit, a decrease of 26.1% compared to the same period last year. However, this resulted in a gross loss of 65.6 million ringgit for the quarter, although this was a reduction from the 275.2 million ringgit recorded in the third quarter of 2020.
Other income reduced the company’s loss by 63.7 million ringgit. However, other expenses, losses, and impairment charges resulted in an operating loss of 252.7 million ringgit, slightly higher than the same period last year.
Finance costs were 95.4 million ringgit, although this was offset by a profit share of 30.9 million ringgit received from a related company, Genting Malaysia. After paying 72.1 million ringgit in taxes, Genting Malaysia recorded a net loss of 307 million ringgit for the quarter.
The third quarter contribution brought the operator’s income for the first nine months (ending September 30) to 2.26 billion ringgit, a decrease of 35.0%.
To date, the cost of goods sold was 2.56 billion ringgit, and after deducting expenses, Genting Malaysia’s operating loss was 906 million ringgit, an increase of 32.4% from 2020. After deducting finance costs and taxes, its net loss for the first nine months was 1.3 billion ringgit.
Looking ahead, Genting cautioned that it may face further disruption from supply chain issues, which, along with increasing energy costs and inflation, could hinder growth.
Nevertheless, the organization stated that Malaysia’s rebound from the COVID-19 pandemic has positioned the nation’s real estate market favorably, particularly as border limitations loosen and immunizations fuel a resurgence in tourism.
Sign up for the iGaming newsletter.