KUALA LUMPUR (Aug 29): Genting Malaysia Bhd (KL:GENM) saw its net profit rose 74.5% to RM82.24 million for the second quarter ended June 30, 2024 (2QFY2024) from RM47.12 million a year earlier, driven by its leisure and hospitality business.

This led to a higher earnings per share of 1.45 sen for 2QFY2024 compared with 0.83 sen for 2QFY2023.

Quarterly revenue rose 7.9% to RM2.67 billion from RM2.47 billion a year earlier, on higher revenue from the leisure and hospitality business.

In a filing with Bursa Malaysia on Thursday, GENM said its leisure and hospitality business in Malaysia registered a 5% year-on-year (y-o-y) increase in revenue to RM1.62 billion. This was predominantly due to higher volume of business from Resorts World Genting's (RWG) gaming and non-gaming segments, and offset by higher operating expenses incurred.

Revenue from the leisure and hospitality businesses in the UK and Egypt also rose 20% y-o-y to RM468.8 million, while that in the US and Bahamas increased 11% y-o-y.

GENM declared an interim dividend of six sen per share for the financial year ending Dec 31, 2024 (FY2024), payable on Oct 7.

For the cumulative six-month period (1HFY2024), its net profit surged more than seven times to RM140.02 million from RM19.7 million a year earlier, on higher adjusted earnings before interest, taxes, depreciation, and amortization, which rose 37% y-o-y, and interest income by RM20.7 million. Revenue for 1HFY2024 rose 14.2% to RM5.43 billion from RM4.76 billion in 1HFY2023.

On its outlook, GENM said it is cautiously optimistic of the near-term prospects of the leisure and hospitality industry and remains positive in the longer term.

"The outlook for international tourism is expected to remain positive, underpinned by improving demand and enhanced air connectivity. Consequently, the regional gaming market is expected to maintain its recovery momentum," it noted.

In Malaysia, GENM remains focused on leveraging its integrated resort offerings to capitalise on the ongoing recovery in regional travel. Its investment in new and refreshed products and lifestyle experiences is part of the group’s ongoing strategy to strengthen its position as a premier tourism destination and drive further growth.

"Additionally, the group is enhancing its digital platforms and expanding strategic partnerships to better meet evolving customer needs and preferences," it said.

GENM owns and operates RWG in Malaysia, Resorts World New York City, as well as Resorts World Catskills and Resorts World Hudson Valley in the US — which are 49% owned via an associate company. It also has Resorts World Bimini in the Bahamas, Resorts World Birmingham, Crockfords Cairo in Egypt and over 30 casinos in the UK. GENM also owns Resorts World Kijal in Terengganu and Resorts World Langkawi.

GENM shares closed down five sen or 1.95% at RM2.52, giving it a market capitalisation of RM14.96 billion. The stock has fallen 6% so far this year.