KUALA LUMPUR (May 25): Genting Bhd posted a net profit of RM98.04 million in the first quarter ended March 31, 2023 (1QFY2023), versus a net loss of RM199.68 million a year before, on the back of better contribution from the leisure and hospitality division as a result of ongoing recovery in regional travel and gaming demand after the relaxation of Covid-19 restrictions.

As a result, the group posted earnings per share of 2.55 sen in 1QFY2023, against a loss per share of 5.19 sen a year ago.

The group’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was at RM1.83 billion, a 41% increase from RM1.3 billion a year ago, the casino-to-hospitality conglomerate said in a filing with Bursa Malaysia on Thursday (May 25).

Quarterly revenue was higher by 38.18% to RM5.82 billion from RM4.21 billion.

The leisure and hospitality segment recorded a better profit before tax (PBT) of RM1.6 billion in 1QFY2023, a 68% increase from RM955 million a year before, as revenue expanded 43% to RM4.78 billion from RM3.33 billion during the same period.

The leisure and hospitality businesses in Malaysia, Singapore, the US and the Bahamas saw improvement in business activities, except for the UK and Egypt, which were affected by inflationary pressure, coupled with higher payroll and operating expenses.

Meanwhile, Genting said the plantation division’s revenue for the current quarter increased compared to last year due to higher sales volume from the downstream manufacturing segment, partially offset by weaker palm product prices. However, the adjusted EBITDA for the division was lower mainly due to the weaker palm product prices.

It also said the power division’s revenue and adjusted EBITDA improved in the current quarter due to higher generation from the Banten power plant in Indonesia following a shorter outage period in the current quarter.

The oil & gas division recorded lower revenue and adjusted EBITDA mainly due to weaker global crude oil prices in the current quarter, it also noted.

On prospects, Genting said the global economic environment is expected to gradually improve. However, downside risks continue to predominate amid ongoing geopolitical tensions and concerns surrounding the impact from monetary policy decisions.

While Malaysia’s economic expansion is expected to moderate in line with a slower global economy, growth will continue to be supported by domestic demand, it added.

Shares in Genting closed down six sen or 1.37% to RM4.33, giving the group a market capitalisation of RM16.79 billion.