Genting Malaysia reported a remarkable 32% increase in revenue for the second quarter, driven by significant growth in its U.S. and Bahamas operations, which compensated for declines in its Malaysian and European sectors. For the three months ending June 30, revenue reached MYR3.85 billion (approximately $952 million), with the U.S. and Bahamas segment witnessing a staggering 166% rise, totaling MYR1.53 billion ($378 million).
This growth was bolstered by the launch of New York's first casino table games at Resorts World New York City (RWNYC) on April 28, where 242 table games and 2,500 slot machines were initially introduced. Last month, an additional 1,400 slot machines were added, and Genting commenced the next phase of its ambitious $5.5 billion expansion in late July.
According to analysts at Nomura, revenue from the U.S. market surged 121% compared to the first quarter, while adjusted EBITDA saw a remarkable 169% sequential increase.
Despite the impressive revenue growth, Genting Malaysia experienced a significant drop in profit, attributed to the costs associated with RWNYC's launch. The company's profit fell to MYR27.0 million ($6.7 million) from MYR398.1 million in the same quarter last year.
Group adjusted EBITDA also declined by 18% to MYR844 million ($209 million), reflecting the impact of RWNYC's opening costs and a foreign exchange loss, contrasting with a substantial gain in the previous year.
At Resorts World Genting (RWG) in Malaysia, revenue dipped by 1% year-on-year to MYR1.77 billion ($438 million), although it showed a 6% increase from the previous quarter. Adjusted EBITDA rose by 20% sequentially to MYR615 million, partially driven by a higher win rate among VIP players.
Nomura analysts Tushar Mohata and Alpa Aggarwal characterized the Malaysian results as a “positive surprise” given the disruptions in travel caused by the ongoing conflict in the Middle East.
Genting Malaysia expressed concerns that geopolitical tensions and rising travel costs might continue to impact tourism negatively. The company stated, “The global economic environment remains uncertain, with renewed geopolitical tensions in the Middle East and macroeconomic risks affecting growth prospects.”
It was noted that both regional and domestic tourism in Malaysia are expected to face challenges as increased airfares and travel-related fuel costs influence consumer travel choices. The company plans to maintain a focus on operational discipline and yield management while selectively investing in its Malaysian resort offerings.
In another major U.S. property, Resorts World Las Vegas (RWLV) also reported year-on-year growth in Q2, with revenue up by 1% to $181 million and EBITDA rising by 33% to $24 million. The Las Vegas venue benefited from higher convention attendance and increased high-end casino activities, with hotel occupancy climbing to 88.0% from 80.2% a year earlier, and the average daily rate increasing to $274 from $265.
However, RWLV's results showed a decline sequentially, with revenue falling by 13% from the first quarter and EBITDA decreasing to $50 million. Genting Bhd anticipates that convention booking trends at RWLV will remain robust, and gaming outcomes will improve as they expand high-end casino play and resort marketing initiatives. “RWLV remains committed to enhancing margins by refining productivity and optimizing its fixed cost structure,” the company concluded.