Genting incurs RM304.8 mil impairment in 4Q; declares nine sen dividend

KUALA LUMPUR (Feb 23): Genting Bhd’s net loss widened to RM168.72 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM129.8 million a year earlier, mainly due to net impairement loss of RM304.8 million besides higher depreciation charges and net unrealised foreign exchange losses.

As a result, loss per share in the quarter under review increased to 4.38 sen from 3.37 sen the prior year. Nonetheless, it declared a final single-tier dividend of nine sen per share, to be paid on April 20.

Genting’s quarterly revenue grew 31.5% to RM6.36 billion from RM4.84 billion, boosted by the group’s leisure and hospitality division, especially in the US and Bahamas.

“Resorts World New York City (RWNYC) recorded a higher contribution from non-gaming revenue following the opening of Hyatt Regency JFK Airport in August 2021. Higher revenue was recorded by Resorts World Bimini as a result of relaxation of travel restrictions since June 19, 2022,” said Genting in a filing with Bursa Malaysia on Thursday (Feb 23).

Additionally, this was also boosted by Resorts World Genting’s (RWG) performance mainly due to higher business volume following further relaxation of Covid-19 restrictions and the reopening of national borders.

“The opening of Genting SkyWorlds theme park in February 2022 has also contributed to an increase in the non-gaming revenue during 4Q2022,” Genting explained.

For the full FY2022, Genting’s net loss narrowed to RM299.91 million from RM1.37 billion a year earlier due to higher adjusted earnings before interest, tax, depreciation and amortisation and lower pre-opening expenses. Full-year revenue jumped 65.44% to RM22.38 billion from RM13.53 billion.

On prospects, it said international tourism is expected to rebound near pre-pandemic levels in certain regions despite prevalent challenges due to inflationary pressures and continued disruptions from ongoing geopolitical conflicts.

“In line with the improving optimism surrounding international travel, the broad-based recovery of the regional gaming sector is expected to remain intact, aided by the re-opening of key markets and pent-up demand,” Genting added.

Genting’s share price closed up four sen or 0.86% at RM4.71 on Thursday, giving it a market capitalisation of RM18.26 billion.