Genting CEO steps down, Genting Malaysia swings to a loss
Genting Group has announced that patriarch Lim Kok Thay has stepped down from his role as chief executive officer (CEO) of Genting Berhad, effective 1 March. Thay will be replaced by long-time President, Chief Operating Officer (COO) and Executive Director Tan Kong Han.
Outgoing CEO Thay will move on to focus on other responsibilities within the group but will remain as an executive director. Tan steps into the role of CEO after 18 years in the role of president, COO and executive director, he was also the CEO of Genting Plantations. As he steps in the new role, he will relinquish his position as COO but retain his position as president and executive director.
Genting Malaysia’s Q4 figures
Genting Berhad owns Las Vegas Strip property Resorts World Las Vegas and is majority shareholder in Genting Singapore and Genting Malaysia, which has announced its fourth quarter results on Friday (28 February). Genting Malaysia swung to a net loss of RM485.6 million ($108.8 million) for the period, a reversal from a profit of RM217.6 million in 4Q23.
The company experienced a significant drop in its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), falling by 17 percent year-on-year to RM621.5 million. Revenue for the period dropped by 7.8 percent to RM2.68 billion. This decline was primarily attributed to increased operating costs, including those associated with the company’s New York gaming license bid. Despite the reported loss, the company declared a final dividend of 4 sen per share – less than half the 9 sen per share declared a year earlier.
In Malaysia, the group’s leisure and hospitality operations reported a slight 1 percent decline in revenue, reaching RM1.17 billion. The adjusted EBITDA in this segment fell by 7 percent to RM490.4 million.
Official comments
Addressing its results, Genting Malaysia said it remains “cautiously optimistic of the near-term prospects of the leisure and hospitality industry and remains positive in the longer-term.”
The company added, “The group remains focused on strengthening its yielding capabilities, enhancing operational efficiencies and leveraging database marketing to optimise performance. Efforts will also be directed toward refining marketing strategies to increase visitation at RWG, whilst maintaining a diverse range of offerings that deliver maximum value to guests. Additionally, the Group will continue to place emphasis on effective cost management to maintain resilience and ensure business agility in an evolving operating environment.
“Ongoing investments in infrastructure upgrades and new attractions at Genting Highlands, including new ecotourism experiences set to launch this year, will further elevate the group’s offerings.
“To celebrate the Genting Group’s 60th anniversary, a series of promotional events and activities will be introduced throughout the year to attract more visitors to RWG.”
