September 28, 2022 Malaysia
Genting Malaysia Bhd is continuing to ramp up domestic operations with the company set to commission up to three more rides at its recently opened Genting SkyWorlds theme park in 4Q22.
The update formed part of Genting Malaysia’s corporate presentation for investor events in September, where it outlined its short-term plans to drive further traffic back to Resorts World Genting.
This, it said, would include expanding the Genting SkyWorlds theme park as well as “Continued ramp up of RWG’s operations whilst capitalising on demand for integrated resort offerings” and “Investments in targeted events and promotions … to drive leisure traffic.”
The presentation also highlighted the company’s impressive recovery trajectory during the first six months of 2022, with visitation to RWG growing from 2.1 million in 1H21 to 9.9 million.
Genting Malaysia saw its revenue more than double to MYR2.18 billion (US$487 million) in the June quarter, including a five-fold increase in revenue from RWG to MYR1.31 billion (US$293 million), with the upward trend set to continue into 2023 according to a weekend note from Fitch.
The ratings agency expects revenues at RWG to return to 95% of pre-COVID-19 levels in 2023, boosted by strong recovery in the domestic market following the easing of COVID-19 restrictions in April.
The new theme park itself opened in January of this year, sitting on 26 acres of land at RWG. Coming at a cost of US$800 million, it is not expected to be profitable in and of itself but has been described by analysts as “net positive” because it will grow general visitation.
“Even though we expect Genting SkyWorlds to be loss-generating due to heavy depreciation, we are confident that it will draw the crowds (whether gaming or non-gaming) and be net positive for Genting Malaysia,” wrote Maybank IB analyst Samuel Yin Shao Yang at the time.