Genting Bhd posted a net profit of RM239.66 million for the second quarter ended June 30, 2024, compared with RM160.55 million for the same period a year earlier on other non-operating gain and a reduction in the share of losses.

KUALA LUMPUR (Aug 29): Gaming-to-plantation conglomerate Genting Bhd (KL:GENTING) reported a 49% jump in its second-quarter net profit partly helped by other non-operating gain and a reduction in the share of losses.

Net profit for the three months ended June 30, 2024 (2QFY2024) was RM239.66 million, compared with RM160.55 million for the same period a year earlier. Revenue rose 3% year-on-year to RM6.86 billion from RM6.66 billion due to contribution from the leisure and hospitality division.

The company booked RM24.16 million other gain compared to RM236.34 million loss in 2QFY2023. The share of losses from joint ventures and associates tumbled 68.76% to RM16.31 million from RM52.22 million, driven by increased profits from the Meizhou Wan power plant in China.

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

In 2QFY2024, Genting’s adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 11% to RM2.21 billion from RM1.99 billion.

Genting declared an interim single-tier dividend of six sen per share, to be paid on Oct 11.

For the first half ended June 30, 2024 (1HFY2024), Genting’s net profit surged threefold to RM828.52 million from RM258.58 million. Revenue also increased by 14.49%, to RM14.29 billion compared to RM12.48 billion.

Going forward, Genting said it is investing in “new and refreshed products and lifestyle experiences” as part of its ongoing strategy to strengthen its position in Malaysia. In the UK, the company is maintaining focus on cost management and operational efficiencies to improve overall performance.

In the US, Genting will continue to “place emphasis on enhancing its marketing initiatives to drive visitations and expand its customer database, while leveraging synergies” between Resort World New York City and Empire Resorts Inc’s assets to improve overall returns.

The company expects the number of visitor arrivals to Singapore to grow, though a full recovery to pre-pandemic levels could face headwinds from recovery of regional travel destinations and rising geopolitical tensions.

Genting added it plans to roll out four global blockbuster intellectual property partnerships to boost visitorship and spending in Singapore.

Shares of Genting declined 13 sen or 2.93% to close at RM4.31 on Thursday ahead of the results announcement, translating into a market capitalisation of RM16.71 billion.