Genting Malaysia, a business under the Genting Group, declared its third-quarter 2021 financial results. Income reached 826.2 million Malaysian ringgit, which equates to roughly 146.1 million pounds or 172.8 million euros.
Local restrictions had a significant effect on Genting Malaysia’s third-quarter income. The company’s earnings were down 41.6% compared to the same period in 2020.
The majority of the income came from leisure and hospitality. Genting’s Resorts World in Genting Highlands, Genting, and Langkawi in Malaysia generated 17.7 million ringgit in revenue, a decrease of 1.16 billion ringgit year-over-year.
The substantial decline in income was primarily due to Resorts World Genting being closed due to Malaysia’s coronavirus lockdown. It only reopened on September 30, the last day of the reporting period.
The reopening of UK land-based casinos in May, following the Covid-19 lockdown, helped to offset the Malaysian closures. Genting UK’s Crockfords, Birmingham Resorts World, and Crawford Cairo in Egypt generated 406 million ringgit in revenue, an increase of 209.0%.
This was primarily because these properties were closed for most, if not all, of the third quarter of 2020.
In the United States, Resorts World New York City and Resorts World Catskills, along with Bimini Resorts World in the Bahamas, also saw revenue growth. Income increased from 69.9 million ringgit in 2020 to 364.2 million ringgit in the third quarter of 2021.
The New York Resort World reopened its doors in June of 2021, after being affected by the global health crisis.
Total income from leisure and hospitality ventures was RM787.9 million, a decrease of 43.0% compared to the previous year.
Other asset income amounted to RM20.3 million, an increase of 14.0%, while investment income climbed to RM18.1 million, a rise of RM1.6 million.
On the expenditure side, the cost of goods sold was RM891.8 million, a decrease of 26.1% compared to the previous year. However, this resulted in a gross loss of RM65.6 million for the quarter, although this was a reduction from the RM275.2 million recorded in the third quarter of 2020.
Other income reduced the company’s deficit by RM63.7 million. However, other expenses, losses, and impairment charges resulted in an operating loss of RM252.7 million, slightly higher than the previous year.
Finance costs were RM95.4 million, although this was offset by a RM30.9 million share of profit from associated companies received by Genting Malaysia. After paying RM72.1 million in taxes, Genting Malaysia recorded a net loss of RM307 million for the quarter.
The third quarter contribution brought the operator’s nine-month revenue to RM2.26 billion, a decrease of 35.0%.
Year-to-date, the cost of goods sold was RM2.56 billion, resulting in an operating loss of RM906 million for Genting Malaysia after deducting expenses, an increase of 32.4% from 2020. After deducting finance costs and taxes, its nine-month net loss was RM1.3 billion.
Looking ahead, Genting cautioned that it may face further challenges from supply chain disruptions, which, along with rising energy costs and inflation, could impede growth.
Nevertheless, Malaysia’s rebound from the COVID-19 outbreak has positioned its local property market favorably, particularly as border limitations loosen and vaccination campaigns fuel tourism revival.
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