KUALA LUMPUR (May 25): Genting Malaysia Bhd (GenM)’s net loss narrowed 69.29% to RM27.38 million for the first quarter ended March 31, 2023 (1QFY2023), from RM126.53 million a year earlier, boosted by improved contribution from its leisure and hospitality segment. Loss per share fell to 0.48 sen from 2.24 sen.

The leisure and hospitality segment posted higher earnings before interest, tax, depreciate and amortisation (Ebitda) of RM617.3 million, up 45% compared with RM425.6 million in 1QFY2022, as the segment’s revenue rose 52% to RM1.4 billion from RM920 million.

The higher earnings were also helped by lower finance costs, which stood at RM148.43 million, versus RM169.54 million in 1QFY2022.

The quarterly result was partly offset by a 172.72% increase in tax expenses at RM86.70 million, from RM31.79 million previously, and due to recognition of impairment losses on other receivables in the US amounting to RM3.5 million.

It was also offset by higher losses arising from share of results in associates and joint ventures, totalling RM67.47 million in 1QFY2023, a 36.99% increase over RM49.25 million a year earlier.

The group also reported a loss of share from the results of a joint venture, totalling RM45,0000. No loss was reported a year earlier.

GenM’s quarterly revenue rose 32.66% to RM2.28 billion, from RM1.72 billion in 1QFY2022.

On prospects, GenM said international travel demand is expected to remain positive, although macroeconomic uncertainties and inflationary pressures could constrain its recovery.

Meanwhile, it said the regional gaming market is expected to continue improving with the improved outlook on global travel.

The group continues to be cautiously optimistic about the near-term outlook of the leisure and hospitality industry, and remains positive in the longer term.

GenM, whose resorts include Resorts World Genting in Malaysia and Resorts World New York City, saw its share price close down one sen or 0.38% at RM2.62 on Thursday (May 25), giving the group a market capitalisation of RM15.56 billion.