By Ying Xian Wong
Malaysian resort operator Genting Bhd. swung to profit both for its fourth quarter and for the full year, cashing in on a rebound in appetite for travel.
The company said late Thursday that it made a profit of 150.1 million ringgit ($31.6 million) during the final three months of 2023. That compared with a net loss of MYR168.7 million in the same period a year ago.
Genting said the improvement was mainly due to a jump in revenue at its leisure and hospitality division. Reduced impairment losses, lower net finance costs and a smaller share of losses in joint ventures and associates also contributed.
The group’s quarterly revenue was 14% higher on year at MYR7.27 billion.
For 2023, net profit came in at MYR929.2 million, compared with a net loss of MYR299.9 million a year earlier. This was also driven by the stronger performance of its leisure and hospitality division. The result missed the median forecast for a net profit of MYR1.34 billion from a FactSet poll of analysts, however.
Looking ahead, Genting said it expects increased global air travel connectivity and a rebound in Asian markets to keep supporting the international tourism recovery. Though macroeconomic and geopolitical headwinds could put a lid on travel demand, the regional gaming market has scope to keep strengthening.
Write to Ying Xian Wong at [email protected]
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