KUALA LUMPUR: Genting Malaysia Bhd recorded a 15.8 per cent improvement in first-quarter (Q1) net profit to RM342.07 million compared with a year earlier following the opening of new facilities and attractions at Resorts World Genting (RWG) under its 10-year master plan.
Revenue for the quarter ended March 31, 2018, rose by 7.9 per cent to RM2.40 billion, the integrated resort operator said in a filing with Bursa Malaysia.
Revenue and adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of its Malaysian leisure and hospitality business rose 19 per cent and 22 per cent, respectively, as the new additions under the Genting Integrated Tourism Plan were well-received, the company said.
“RWG welcomed 6.5 million visitors during the quarter, a commendable 26 per cent growth from Q1 2017 despite on-going development works at the resort. Meanwhile, RWG's hotels maintained strong occupancy rates at 96 per cent in Q1 2018,” it added.
However, the better contribution from the domestic operations was offset by the weaker revenue and adjusted EBITDA posted by the group's casino businesses in the United Kingdom (UK) and Egypt.
The leisure and hospitality business in the United States and the Bahamas also recorded lower revenue but saw an improvement in EBITDA.
Genting Malaysia said moving forward, it remained optimistic of the opportunities and growth potential of the leisure and hospitality industry amid the positive global economic momentum that was expected to help spur international tourism.
"In Malaysia, the on-going development of the Genting Integrated Tourism Plan at RWG remains the primary focus of the group as it prepares to roll out the new Skytropolis indoor theme park and the highly anticipated Twentieth Century Fox World Theme Park,” it said.
Genting Malaysia also planned to intensify database marketing efforts to optimise yield management and improve operational efficiencies and service delivery at the resort.
"Additionally, the group will place emphasis on strategic marketing efforts and leverage on the introduction of new world-class facilities and attractions at RWG to expand into regional markets," it said.
As for the UK operations, Genting Malaysia said it aimed to continue delivering sustainable performance there by managing business volatility in the premium players segment.
On the US business, the group said it was focusing on the US$400 million expansion of Resorts World Casino New York City, which had continued to lead in terms of gaming revenue in the Northeast US region despite growing regional competition.