KUALA LUMPUR: Genting Malaysia Bhd's (GENM) net loss narrowed to RM126.53 million in the first quarter (Q1) ended March 31, 2022 from the net loss of RM483.59 million in the same quarter a year ago.
Genting Malaysia's revenue almost tripled to RM1.72 billion from RM623.35 million, due to higher revenue contribution from its leisure and hospitality businesses in Malaysia, the UK and the US.
In a statement today, the group said in Malaysia, revenue from its leisure and hospitality business had more than tripled to RM920 million.
"The improvements were primarily due to overall higher volume of business at Resorts World Genting (RWG) as a result of the eased travel restrictions in the country," it said.
In the UK and Egypt, revenue from the group's operations recovered to RM395.3 million, nearly ten times of the level recorded in Q1 2021, mainly due to the impact of a resurgence in Covid-19 cases in the UK on its operations in Q1 2021, which resulted in the temporary closure of the group's resort and land-based businesses.
The group incurred higher payroll and related expenses in Q1 2022 compared to Q1 2021, following the resumption of its UK operations in mid-May 2021.
In the US and Bahamas, the group's leisure and hospitality business grew 40 per cent to RM357.9 million, mainly driven by the strong operating performance registered at Resorts World New York City (RWNYC), as facilities in the New York State continued to operate without mandated Covid-19 restrictions.
By comparison, RWNYC operated with reduced capacity and under limited operating hours in 1Q21 in compliance with a government directive, which adversely impacted its performance in the quarter.
Genting Malaysia said international tourism was expected to continue its gradual recovery although weakening economic sentiments may delay the return of confidence in global travel.
Nevertheless, it said the progressive reopening of borders and continued easing of Covid-19 restrictions would improve optimism surrounding the tourism, leisure and hospitality industries, including the regional gaming sector.
"Therefore, the group is positive on the longer-term outlook of the leisure and hospitality industry," it said.