Genting Group announced its third-quarter results today, exceeding market expectations. Genting Malaysia recorded a net profit of RM850 million, a significant year-on-year increase of 45%.
The earnings growth was mainly driven by the following factors:
1. Strong tourism recovery: With the full lifting of international travel restrictions, visitor numbers to Genting Highlands increased 60% year-on-year, with international visitors accounting for 35%.
2. New facility openings: Parts of the Genting Outdoor Theme Park opened this quarter, attracting a large number of family visitors.
3. Gaming revenue exceeds expectations: Both VIP and mass market gaming revenues recorded double-digit growth, with VIP revenue growing 55%.
The Chairman of Genting Group expressed confidence in the company's future development and expects the strong growth momentum to continue in the fourth quarter. The company also announced an interim dividend of RM0.15 per share.
Analysts generally raised their target prices for Genting Malaysia, with the average target price revised up from RM3.50 to RM4.20.