Activities in Malaysia accounted for more than half the total revenue, at MYR1.39bn. This was a seismic MYR1.37bn higher than in Q3 2021. In a statement alongside the results, Genting Malaysia said his was due to increased visitation after Covid-19 pandemic restrictions were lifted.
“In Malaysia, the group is encouraged by the increase in visitation at Resorts World Genting (RWG) following the reopening of the national borders and the relaxation of Covid-19 restrictions in the region,” said Genting Malaysia.
“In view of the potential challenges in the operating environment, the group will continue to closely monitor risks and demand and react accordingly.”
However, revenue in the UK and Egypt fell by 2.9% to MYR393.9m. Genting Malaysia called the UK a “challenging landscape”, and said that it would “prioritise cost management measures” there.
Meanwhile, for the US and Bahamas, revenue was MYR424.9m – up by 16.4%. Further revenue from property and investments at MYR20.4m and MYR36.7m respectively made up the remaining total revenue.
Genting Malaysia said that overall, global operating conditions are set to be economically challenging.
“Global economic conditions are expected to remain challenging with subdued outlook for major economies as concerns surrounding recessionary and inflationary pressures, tightening monetary policies and geopolitical tensions persist,” said the operator.
“In Malaysia, economic growth is expected to be supported by domestic demand amid the weakening external environment.”
Turning to costs, sales amounted to MYR1.73bn, up by 95.6%. This left the profit for the quarter at MYR535.2m, an increase of MYR600.8m yearly.
Other income increased the revenue by MYR92.8m. However other expenses amounted to MYR303.1m. With other losses at MYR32.8m, the total decreased further to MYR292.0m.
Impairment losses totaled at MYR47.6m. Finance costs came to MYR142.0m, while share of results in an associate was MYR6.6m. Share of results in a joint venture was MYR10,000.
After tax, which totaled at MYR103.9m, the total loss for the three months was MYR8.2m. This was significantly less than the loss in Q3 2021, which was MYR307.0m.
During the quarter, Genting was a surprise entry into the Macau licence bidding process. The bid was opened to find six new concessionaires for licences in Macau, as is dictated by Macau’s new regulatory structure. The new structure came in as part of the passing of Macau’s new Gaming Act.
Because Genting has entered the race, it will not be able to receive a licence without one existing licensee being eliminated from the market.
The other applicants are Galaxy Entertainment, Las Vegas Sands, Melco Resorts, MGM China, SJM Holdings and Wynn.