Genting Likely to Post 2023 Profit on Tourism Recovery– Earnings Preview

By Ying Xian Wong

Genting Bhd. is expected to report results for fourth-quarter and full-year results on Friday. Here’s what you need to know:

NET PROFIT FORECAST: The hospitality group is expected to have swung to net profit of 1.34 billion ringgit ($280.5 million) for 2023, according to the median forecast in a FactSet survey of analysts. The company posted net loss of MYR299.9 million for 2022, as higher depreciation charges offset better performance of its leisure and hospitality division. For the first nine months of 2023, Genting posted net profit of MYR779.1 million.
REVENUE FORECAST: Revenue for the year is expected have risen 15% to MYR26.23 billion, according to the median forecast in the FactSet survey. Genting booked revenue of MYR22.38 billion in 2022 and MYR19.85 billion through the first nine months of 2022.
Genting’s shares began an uptrend in October last year, rising around 23% since that month, and is 5.2% higher so far this year, driven by optimism over a recovery in tourism as well as its strong third-quarter profit.
WHAT TO WATCH:
–MALAYSIA OPERATIONS: Subsidiary Genting Malaysia likely continued to benefit from a tourism recovery, especially over the year-end festive season. The recovery in global flight frequencies, particularly outbound flights from China, could sustain this momentum, Hong Leong Investment Bank analyst Sophie Chua Siu Li said in a note. Meanwhile, Malaysia granted 30-day visa-free entry to visitors from China and India in last December, which should also boost tourist arrivals.
–U.S. OPERATIONS: Subsidiary Resorts World Las Vegas likely benefited from seasonally higher visitation in the fourth quarter, as well as the Las Vegas Grand Prix held in November, Maybank Investment Bank analyst Yin Shao Yang said in a note. Resorts World Last Vegas should post a strong performance for the final three months of 2023 after reports that the Grand Prix attracted 315,000 attendees and generated an estimated economic impact of around $1.2 billion, TA Securities analyst Tan Kam Meng said in a note.
Write to Ying Xian Wong at yingxian.wong@wsj.com