29-05-2025
- Business
- New Straits Times
Genting's Q1 earnings plunge to RM4.5mil versus RM588.7mil a year ago
KUALA LUMPUR: Genting Bhd's net profit tumbled to RM4.57 million in the first quarter to March 31 2025 from RM588.87 million a year ago.
Group revenue stood at RM6.51 billion, down 12 per cent from the previous year's corresponding quarter of RM7.43 billion.
Genting attributed the lower revenue mainly to the leisure and hospitality division.
The group's adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) for Q1 2025 of RM1.99 billion was lower than the RM2.57 billion posted in Q1 2024.
The strengthening of the ringgit against Singapore dollar, pound sterling and US dollar partly contributed to the lower group revenue and Ebitda.
Genting said Resorts World Sentosa (RWS) recorded lower revenue and profit.
"The results for Q1 2025 was affected by a lower VIP rolling win rate and the temporary closure of Hard Rock Hotel for renovation and rebranding works, which led to a reduction in available room inventory.
"RWS' performance was also weaker in comparison with Q1 2024 where Singapore saw stronger visitorship and tourism spending during the Chinese New Year festive season along with the relaxation of visa regulations between China and Singapore in February 2024."
Resorts World Genting (RWG) recorded lower revenue over 1Q24, due to the timing of the festive season and lower business volumes in the premium players segment in Q1 2025.
Revenue from the group's leisure and hospitality businesses in the United Kingdom and Egypt was lower due to strengthening of the ringgit against pound sterling.
However, a lower Ebitda was recorded primarily due to higher operating and payroll related expenses in Q1 2025.
The leisure and hospitality businesses in the United States of America and Bahamas included the inancial results of Resorts World New York City (RWNYC), Resorts World Bimini (RW Bimini) and Resorts World Las Vegas (RWLV).
Revenue recorded by RWNYC was lower due to stronger ringgit against the US dollar.
RWLV's revenue and Ebitda were impacted by lower hold percentage and lower visitation compared with the record visitation benefited from NFL Super Bowl event in Q1 2024.
Hotel occupancy and average daily rate in Q12025 were 82.3 per cent and US$274 respectively compared with 89.1 per cent and US$298 in Q1 2024.
Genting said its performance for the remaining period of the 2025 financial year may be impacted by the global economic conditions and market volatility.
"In Malaysia, economic growth is expected to expand at a slower pace as heightened geopolitical tensions continue to weigh on both domestic and global sentiments.
"Despite ongoing global uncertainties, demand for international tourism is expected to remain resilient, although recovery is anticipated to be uneven across regions. Consequently, the regional gaming market may face increasing challenges," it added.
In Malaysia, the group remains focused on enhancing RWG's appeal as a regional tourism hub by introducing new facilities and attractions, including new ecotourism experiences at Genting Highlands.
"Celebrations to commemorate the Genting Group's 60th anniversary are underway, featuring a variety of special events, promotions and activities designed to engage visitors and enrich their experience at RWG," it added.
