Genting Berhad in Malaysia witnessed increased profits in Q1, primarily driven by its thriving Leisure and Hospitality sector. According to pay per head bookie experts, this sector recorded a remarkable 27.6 percent increase in revenue, contributing significantly to the group’s overall revenue of $ 1.58 billion for the first three months of 2024.
The strategic decisions in our Plantation and Leisure and Hospitality businesses were key contributors to the group’s expansion, with the former being the primary driver of the revenue increase. While revenue from Plantations was up by a modest 1.6% in Q1, the Leisure and Hospitality sector saw a significant increase of 35.7%.
The substantial increase in revenue had a profound impact on our financial health, with net profit nearly tripling in the first quarter. Furthermore, the quarter’s adjusted EBITDA also saw a robust increase of 40.4%.
Increased Profits in Q1 for Genting Berhad
The surge in revenue in the leisure and hospitality sector, which increased to RM6.48 billion in the first quarter of 2024 from RM4.78 billion the previous year, was primarily attributed to higher tourist numbers and expenditure over the Chinese New Year holiday. The figure, 73.4% more than RM2.77bn in the previous year, was also influenced by the relaxation of visa rules between Singapore and China in February 2024.
According to sportsbook pay per head company reviews and news sites, Resorts World Genting in Malaysia’s revenue was RM1.75bn, a 24.6% increase. Also, the critical reason is the higher volume of business from both the gaming and non-gaming areas. Apart from Asia, Genting had substantial expansion in the United Kingdom and Egypt, leading to a 25.5% increase in revenue to RM442.4m due to increased business volume.
Total Q1 revenue from activities in the US and Bahamas was RM1.58bn, up 7.0% from 2023. This includes the three Resorts World locations in the United States: New York City, Bimini, and Las Vegas.
As a result of better operational performance, Genting has seen an increase in income for this region at Resorts World New York City and Bimini, with a slightly lower occupancy rate but an average daily fee of $298. Genting said it is continuing to improve its position in Las Vegas.
Other Revenue Sources in Q1
The Plantation section, apart from the leisure and hospitality segment, brought in RM574.7m in revenue. Although income from downstream manufacturing fell 12.3%, oil palm plantation revenue increased 6.7% to RM529.2m. During scheduled maintenance, reduced output at Indonesia’s Banten Plant caused a 39.6 percent drop in power income elsewhere.
Property revenue went up 24.0% from oil and gas, around 50%, but from investments and other things, it went down 25.7%.
Genting Berhad did not disclose complete cost information for the period. Nonetheless, Q1 profit and earnings were detailed. After deducting specific expenses, the pre-tax profit was RM1.38 billion, resulting in a 40.2% rise to RM2.57 billion in adjusted EBITDA. This represents a 143.0% increase compared to the previous year’s first quarter.
According to sports handicapping experts, Genting Berhad paid RM381.8 million in tax at the time. Consequently, the remaining net profit was RM998.6m, over three times the RM295.2m recorded the year before. The impact on earnings per share was significant, rising to RM15.29 in Q1 from RM2.55 in 2023.
