THIRD QUARTERLY REPORT
Quarterly report on consolidated results for the nine months ended 30 September 2024. The figures have not been audited.
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2024
INDIVIDUAL | CUMULATIVE | ||||
QUARTER | PERIOD | ||||
Third quarter ended | Nine months ended | ||||
30 September | 30 September | ||||
2024 | 2023 | 2024 | 2023 | ||
RM'000 | RM'000 | RM'000 | RM'000 | ||
Revenue | 2,749,145 | 2,709,824 | 8,183,509 | 7,467,842 | |
Cost of sales | (2,110,533) | (2,008,905) | (6,123,415) | (5,627,421) | |
Gross profit | 638,612 | 700,919 | 2,060,094 | 1,840,421 | |
Other income | 136,115 | 122,440 | 378,565 | 520,413 | |
Other expenses | (577,379) | (345,096) | (1,316,117) | (1,034,396) | |
Other gains/(losses) - net | 583,269 | (26,226) | 465,444 | (285,976) | |
Profit from operations before impairment | |||||
losses | 780,617 | 452,037 | 1,587,986 | 1,040,462 | |
Impairment losses | (11,682) | (12,752) | (35,081) | (16,420) | |
Profit from operations | 768,935 | 439,285 | 1,552,905 | 1,024,042 | |
Finance costs | (201,103) | (164,730) | (526,379) | (471,955) | |
Share of results in associates | (30,674) | (30,494) | (167,315) | (170,054) | |
Share of results in a joint venture | (1,365) | (728) | (4,351) | (2,041) | |
Profit before taxation | 535,793 | 243,333 | 854,860 | 379,992 | |
Taxation | 12,512 | (84,987) | (207,159) | (236,781) | |
Profit for the financial period | 548,305 | 158,346 | 647,701 | 143,211 | |
Profit/(loss) attributable to: | |||||
Equity holders of the Company | 569,160 | 177,405 | 709,180 | 197,149 | |
Non-controlling interests | (20,855) | (19,059) | (61,479) | (53,938) | |
548,305 | 158,346 | 647,701 | 143,211 | ||
Earnings per share (sen) for | |||||
profit attributable to | |||||
equity holders of the Company: | |||||
- Basic | 10.04 | 3.13 | 12.51 | 3.48 | |
- Diluted | 10.04 | 3.13 | 12.51 | 3.48 | |
(The Condensed Consolidated Income Statement should be read in conjunction with the audited Financial Statements for the financial year ended 31 December 2023.)
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GENTING MALAYSIA BERHAD
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2024
INDIVIDUAL | CUMULATIVE | ||||
QUARTER | PERIOD | ||||
Third quarter ended | Nine months ended | ||||
30 September | 30 September | ||||
2024 | 2023 | 2024 | 2023 | ||
RM'000 | RM'000 | RM'000 | RM'000 | ||
Profit for the financial period | 548,305 | 158,346 | 647,701 | 143,211 | |
Other comprehensive (loss)/income | |||||
Items that will not be reclassified | |||||
subsequently to profit or loss: | |||||
Changes in the fair value of equity | |||||
instruments at fair value through other | |||||
comprehensive income | - | - | (2,963) | - | |
Items that may be reclassified | |||||
subsequently to profit or loss: | |||||
Net foreign exchange differences on | |||||
translation of foreign operations | (1,157,121) | (15,663) | (901,065) | 694,289 | |
Other comprehensive (loss)/income for | |||||
the financial period, net of tax | (1,157,121) | (15,663) | (904,028) | 694,289 | |
Total comprehensive (loss)/income for | |||||
the financial period | (608,816) | 142,683 | (256,327) | 837,500 | |
Total comprehensive (loss)/income | |||||
attributable to: | |||||
Equity holders of the Company | (700,887) | 166,298 | (284,848) | 941,376 | |
Non-controlling interests | 92,071 | (23,615) | 28,521 | (103,876) | |
(608,816) | 142,683 | (256,327) | 837,500 | ||
(The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the audited Financial Statements for the financial year ended 31 December 2023.)
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GENTING MALAYSIA BERHAD
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
UNAUDITED | |||
As at | As at | ||
30.09.2024 | 31.12.2023 | ||
RM'000 | RM'000 | ||
ASSETS | |||
Non-current assets | |||
Property, plant and equipment | 13,539,482 | 14,497,479 | |
Land held for property development | 178,229 | 176,266 | |
Investment properties | 1,141,944 | 910,345 | |
Intangible assets | 3,837,658 | 4,253,220 | |
Right-of-use assets | 924,813 | 604,100 | |
Associates | 2,004,069 | 1,935,973 | |
Joint venture | 37,336 | 41,687 | |
Financial assets at fair value through other comprehensive income | 61,329 | 70,982 | |
Financial assets at fair value through profit or loss | 404,452 | 50,270 | |
Other non-current assets | 335,750 | 355,691 | |
Deferred tax assets | 42,395 | 43,221 | |
22,507,457 | 22,939,234 | ||
Current assets | |||
Inventories | 178,230 | 179,098 | |
Trade and other receivables | 670,737 | 611,881 | |
Amount due from holding company | 364 | - | |
Amounts due from related companies | 1,203 | 603 | |
Amounts due from an associate | 98,086 | 92,570 | |
Restricted cash | 9,791 | 615 | |
Cash and cash equivalents | 3,516,904 | 3,884,950 | |
4,475,315 | 4,769,717 | ||
Assets classified as held for sale | 1,014,116 | 1,407,052 | |
5,489,431 | 6,176,769 | ||
TOTAL ASSETS | 27,996,888 | 29,116,003 | |
EQUITY AND LIABILITIES | |||
Equity attributable to equity holders of the Company | |||
Share capital | 1,764,424 | 1,764,424 | |
Reserves | 10,863,698 | 11,998,707 | |
Treasury shares | (935,660) | (935,660) | |
11,692,462 | 12,827,471 | ||
Non-controlling interests | (786,839) | (815,360) | |
TOTAL EQUITY | 10,905,623 | 12,012,111 | |
Non-current liabilities | |||
Other long-term liabilities | 227,606 | 195,371 | |
Long term borrowings | 11,388,669 | 12,075,997 | |
Lease liabilities | 1,010,145 | 690,112 | |
Deferred tax liabilities | 972,288 | 996,961 | |
13,598,708 | 13,958,441 | ||
Current liabilities | |||
Trade and other payables | 2,826,279 | 2,791,968 | |
Amount due to holding company | 6,577 | 30,434 | |
Amounts due to related companies | 2,069 | 53,735 | |
Amounts due to associates | 290 | - | |
Short term borrowings | 152,602 | 140,584 | |
Lease liabilities | 81,682 | 94,567 | |
Derivative financial instruments | 7,629 | - | |
Taxation | 75,365 | 34,163 | |
Dividend payable | 340,064 | - | |
3,492,557 | 3,145,451 | ||
TOTAL LIABILITIES | 17,091,265 | 17,103,892 | |
TOTAL EQUITY AND LIABILITIES | 27,996,888 | 29,116,003 | |
NET ASSETS PER SHARE (RM) | 2.06 | 2.26 |
(The Condensed Consolidated Statement of Financial Position should be read in conjunction with the audited Financial Statements for the financial year ended 31 December 2023.)
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GENTING MALAYSIA BERHAD
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2024
At 1 January 2024
Profit/(loss) for the financial period
Other comprehensive (loss)/income
Total comprehensive (loss)/income for the financial period
Transactions with owners:
Appropriation:
Final single-tier dividend declared for the financial year ended 31 December 2023
Interim single-tier dividend declared for the financial year ending 31 December 2024
Total transactions with owners
At 30 September 2024
Attributable to equity holders of the Company | |||||||
Fair | Non- | ||||||
Value | Treasury | Retained | controlling | ||||
Share Capital | Reserve | Other Reserves | Shares | Earnings | Total | Interests | Total Equity |
RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | RM'000 |
1,764,424 | (83,898) | 2,466,011 | (935,660) | 9,616,594 | 12,827,471 | (815,360) | 12,012,111 |
- | - | - | - | 709,180 | 709,180 | (61,479) | 647,701 |
- | (2,963) | (991,065) | - | - | (994,028) | 90,000 | (904,028) |
- | (2,963) | (991,065) | - | 709,180 | (284,848) | 28,521 | (256,327) |
- | - | - | - | (510,097) | (510,097) | - | (510,097) |
- | - | - | - | (340,064) | (340,064) | - | (340,064) |
- | - | - | - | (850,161) | (850,161) | - | (850,161) |
1,764,424 | (86,861) | 1,474,946 | (935,660) | 9,475,613 | 11,692,462 | (786,839) | 10,905,623 |
(The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited Financial Statements for the financial year ended 31 December 2023.)
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GENTING MALAYSIA BERHAD
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023
Attributable to equity holders of the Company | |||||||||
Fair | Non- | ||||||||
Value | Treasury | Retained | controlling | ||||||
Share Capital | Reserve | Other Reserves | Shares | Earnings | Total | Interests | Total Equity | ||
RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | ||
At 1 January 2023 | 1,764,424 | (83,898) | 1,865,096 | (944,409) | 10,034,604 | 12,635,817 | (706,787) | 11,929,030 | |
Profit/(loss) for the financial period | - | - | - | - | 197,149 | 197,149 | (53,938) | 143,211 | |
Other comprehensive income/(loss) | - | - | 744,227 | - | - | 744,227 | (49,938) | 694,289 | |
Total comprehensive income/(loss) for the financial period | - | - | 744,227 | - | 197,149 | 941,376 | (103,876) | 837,500 | |
Transactions with owners: | |||||||||
Performance-based employee share scheme | - | - | 258 | - | - | 258 | - | 258 | |
Employee share scheme shares vested to employees | - | - | (8,749) | 8,749 | - | - | - | - | |
Transfer of employee share scheme shares purchase price | |||||||||
difference on shares vested | - | - | 4,650 | - | (4,650) | - | - | - | |
Appropriation: | |||||||||
Final single-tier dividend declared for the financial year | |||||||||
ended 31 December 2022 | - | - | - | - | (510,097) | (510,097) | - | (510,097) | |
Interim single-tier dividend declared for the financial year | |||||||||
ended 31 December 2023 | - | - | - | - | (340,064) | (340,064) | - | (340,064) | |
Total transactions with owners | - | - | (3,841) | 8,749 | (854,811) | (849,903) | - | (849,903) | |
At 30 September 2023 | 1,764,424 | (83,898) | 2,605,482 | (935,660) | 9,376,942 | 12,727,290 | (810,663) | 11,916,627 | |
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GENTING MALAYSIA BERHAD
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2024
UNAUDITED | |||
Nine months ended | |||
30 September | |||
2024 | 2023 | ||
RM'000 | RM'000 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Profit before taxation | 854,860 | 379,992 | |
Adjustments for: | |||
Depreciation and amortisation | 930,879 | 928,589 | |
Property, plant and equipment written off | 207,741 | 1,696 | |
Net gain on disposal of property, plant and equipment | (2,004) | (183,538) | |
Finance costs | 526,379 | 471,955 | |
Interest income | (96,274) | (76,094) | |
Investment income | (100) | - | |
Dividend income | (2,571) | (4,675) | |
Impairment losses | 35,081 | 16,420 | |
Provision of retirement gratuities | 43,779 | (1,685) | |
Employee share grant scheme expenses | - | 258 | |
Share of results in associates | 167,315 | 170,054 | |
Share of results in a joint venture | 4,351 | 2,041 | |
Net exchange (gains)/losses - unrealised | (440,697) | 289,167 | |
Income from capital award | (154,167) | (142,953) | |
Other non-cash items and adjustments | 4,117 | (8,112) | |
1,223,829 | 1463,123 | ||
Operating profit before working capital changes | 2,078,689 | 1,843,115 | |
Net change in current assets | (170,900) | (546,131) | |
Net change in current liabilities | 65,436 | 147,845 | |
(105,464) | (398,286) | ||
Cash generated from operations | 1,973,225 | 1,444,829 | |
Net tax paid | (101,642) | (92,025) | |
Retirement gratuities paid | (6,964) | (5,868) | |
(108,606) | (97,893) | ||
Net Cash Flow from Operating Activities | 1,864,619 | 1,346,936 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Addition of property, plant and equipment | (404,188) | (505,020) | |
Addition of investment properties | (17,586) | (32,350) | |
Investment in financial assets at fair value through profit or loss | (350,000) | - | |
Investment in associates | (467,200) | - | |
Restricted cash | (9,239) | - | |
Proceeds from disposal of property, plant and equipment | 2,278 | 611,193 | |
Proceeds from capital award | 84,682 | 95,496 | |
Interest received | 95,526 | 75,688 | |
Other investing activities | (3,634) | 5,125 | |
Net Cash Flow (Used in)/From Investing Activities | (1,069,361) | 250,132 |
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings and payment of transaction costs Repayment of lease liabilities
Proceeds from borrowings Dividend paid
Finance costs paid
Net Cash Flow Used in Financing Activities
NET MOVEMENT IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL PERIOD EFFECT OF CURRENCY TRANSLATION
CASH AND CASH EQUIVALENTS AT END OF FINANCIAL PERIOD
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash and bank balances
Money market instruments and deposits with licenced banks
CASH AND CASH EQUIVALENTS AT END OF FINANCIAL PERIOD
(4,359,726) (587,511)
(103,078) (86,886)
4,448,263 557,438
(510,097) (510,097)
(416,621) (438,748)
(941,259) (1,065,804)
(146,001) 531,264
3,884,950 3,043,708
(222,045) 112,860
3,516,904 3,687,832
2,008,885 2,133,735
1,508,019 1,554,097
3,516,904 3,687,832
(The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the audited Financial Statements for the financial year ended 31 December 2023.)
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GENTING MALAYSIA BERHAD
NOTES TO THE INTERIM FINANCIAL REPORT - THIRD QUARTER ENDED 30 SEPTEMBER 2024 Part I: Compliance with Malaysian Financial Reporting Standard ("MFRS") 134
-
Accounting Policies, Presentation and Methods of Computation
The interim financial report has been prepared in accordance with MFRS 134 "Interim Financial Reporting" and paragraph 9.22 of Bursa Malaysia Securities Berhad ("Bursa Securities") Listing Requirements.
The interim financial report should be read in conjunction with the audited financial statements of the Group for the financial year ended 31 December 2023. The accounting policies, presentation and methods of computation adopted for the interim financial report are consistent with those adopted for the annual audited financial statements for the financial year ended 31 December 2023 except for the adoption of amendments to published standards by the Group for the financial year beginning 1 January 2024: - Amendments to MFRS 101 Classification of Liabilities as Current or Non-Current
- Amendments to MFRS 101 Non-current Liabilities with Covenants
- Amendments to MFRS 16 Lease Liability in a Sale and Leaseback
- Amendments to MFRS 107 and MFRS 7 Supplier Finance Arrangements
The adoption of these amendments to published standards did not have any material impact on the interim financial report of the Group.
-
Seasonal or Cyclical Factors
The business operations of the Group's leisure and hospitality division are subject to seasonal fluctuations. The results are affected by major festive seasons and holidays. - Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flows
There were no unusual items affecting the assets, liabilities, equity, net income or cash flows of the Group for the nine months ended 30 September 2024. - Material Changes in Estimates
There were no material changes in estimates of amounts reported in prior financial years. - Changes in Debt and Equity Securities Issuance of Medium Term Notes ("MTN")
On 31 May 2024, GENM Capital Berhad ("GENM Capital"), a direct wholly-owned subsidiary of the Company, had issued RM1.3 billion in nominal value of MTNs via 3 tranches under the RM5.0 billion in nominal value and 1 tranche under the RM3.0 billion in nominal value of MTN Programmes.
On 10 June 2024, GENM Capital had issued RM400 million in nominal value of MTNs via 1 tranche each under the RM3.0 billion in nominal value and RM5.0 billion in nominal value of MTN Programmes.
The proceeds from the issuance of the MTNs shall be utilised for operating expenses, capital expenditure, investment, refinancing, working capital requirements and/or general funding requirements, including to finance the development and/or redevelopment of the properties and/or resorts of GENM and/or its subsidiaries including those located in Genting Highlands, Pahang, Malaysia.
Redemption of MTN
On 10 July 2024, GENM Capital had early redeemed RM1.3 billion in nominal value of the RM2.4 billion in nominal value of MTNs issued on 24 August 2015 under the MTN programme.
7
-
Changes in Debt and Equity Securities (Cont'd)
Issuance of Senior Notes due 2029
On 25 September 2024, Genting New York LLC ("GENNY") and GENNY Capital Inc., indirect wholly-owned subsidiaries of the Company, collectively issued USD625.0 million Senior Notes due in 2029 ("Notes"). The Notes bear interest at a rate of 7.25% per annum, payable semi-annually.
The proceeds from issuance of the Notes were used to refinance existing indebtedness. Concurrently with the issuance of the Notes, GENNY entered into a new Senior Secured Credit Facility, which include a USD775.0 million delayed draw term loan facility and a USD150.0 million revolving credit facility.
Other than the above, there were no other material issuance, cancellation, repurchase, resale or repayments of debts or equity securities for the nine months ended 30 September 2024. - Dividend Paid
Dividend paid during the nine months ended 30 September 2024 is as follows:
RM'Mil | |
Final single-tier dividend for the financial year ended 31 December 2023 paid on 15 April 2024 | |
- 9.0 sen per ordinary share | 510.1 |
- Segment Information
The segments are reported in a manner that is consistent with the internal reporting provided to the chief operating decision maker. The performance of the operating segments is based on a measure of adjusted earnings/(losses) before interest, tax, depreciation and amortisation ("EBITDA/(LBITDA)"). This measurement basis excludes the effects of gain or loss on disposal of assets, assets written off, impairment loss or reversal of previously recognised impairment loss, pre-operating expenses and other non-recurring items.
The Group is organised into the following main business segments:
Leisure & Hospitality - this segment comprises integrated resort activities which include gaming, hotels, food and beverages ("F&B"), theme parks, retail, entertainment attractions, tours and travel related services and other supporting services.
Properties -this segment is involved in property developments, property investment and management.
All other immaterial business segments including investment in equities, training services, reinsurance services, utilities services, yacht charter services and information technology related services are aggregated and disclosed under "Investments & Others" as they are not of sufficient size to be reported separately.
8
- Segment Information (Cont'd)
Segment analysis for the nine months ended 30 September 2024 is set out below:
Revenue
Total revenue
Inter segment
External
Adjusted EBITDA
Main foreign currency
Exchange ratio of 1 unit of foreign currency to RM
Leisure & Hospitality | Property | Investments | Total | |||||
& Others | ||||||||
United | United States | |||||||
Kingdom | of America | Total | ||||||
Malaysia | and Egypt | and Bahamas | ||||||
RM'Mil | RM'Mil | RM'Mil | RM'Mil | RM'Mil | RM'Mil | RM'Mil | ||
5,049.1 | 1,449.2 | 1,518.4 | 8,016.7 | 76.1 | 215.3 | 8,308.1 | ||
(4.4) | - | - | (4.4) | (5.9) | (114.3) | (124.6) | ||
5,044.7 | 1,449.2 | 1,518.4 | 8,012.3 | 70.2 | 101.0 | 8,183.5 | ||
1,601.8 | 242.7 | 454.3 | 2,298.8 | 14.6 | 416.4 | 2,729.8 | ||
RM | GBP | USD | RM/USD | RM/USD | ||||
5.9219 | 4.6401 | 4.6401 | 4.6401 |
During the nine months ended 30 September 2024, revenue from the leisure & hospitality segment of RM8,012.3 million comprised gaming revenue and non-gaming revenue of RM5,875.5 million and RM2,136.8 million respectively.
A reconciliation of adjusted EBITDA to profit before taxation is provided as follows: | |
RM'Mil | |
Adjusted EBITDA for reportable segments | 2,729.8 |
Pre-operating expenses | (90.2) |
Property, plant and equipment written off | (207.7) |
Impairment losses | (35.1) |
Redundancy costs | (4.3) |
Net gain on disposal of property, plant and equipment | 2.0 |
Others | (6.9) |
EBITDA | 2,387.6 |
Depreciation and amortisation | (930.9) |
Interest income | 96.3 |
Finance costs | (526.4) |
Share of results in associates and joint venture | (171.7) |
Profit before taxation | 854.9 |
9
- Segment Information (Cont'd)
Segment Assets
Segment Liabilities
Main foreign currency
Exchange ratio of 1 unit of foreign currency to RM
Leisure & Hospitality | Property | Investments | Total | |||
& Others | ||||||
United | ||||||
United | States | |||||
Kingdom | of America | |||||
and | and | |||||
Malaysia | Egypt | Bahamas | Total | |||
RM'Mil | RM'Mil | RM'Mil | RM'Mil | RM'Mil | RM'Mil | RM'Mil |
10,908.5 | 4,493.8 | 5,352.8 | 20,755.1 | 1,447.3 | 1,187.9 | 23,390.3 |
2,089.9 | 1,543.2 | 346.4 | 3,979.5 | 157.8 | 25.0 | 4,162.3 |
RM | GBP | USD | RM/USD | RM/USD | ||
5.5307 | 4.1220 | 4.1220 | 4.1220 | |||
RM'Mil |
A reconciliation of segment assets to total assets is as follows: | |
Segment assets | 23,390.3 |
Interest bearing instruments | 1,494.8 |
Associates | 2,004.1 |
Joint venture | 37.3 |
Assets classified as held for sale | 1,014.1 |
Unallocated corporate assets | 56.3 |
Total assets | 27,996.9 |
A reconciliation of segment liabilities to total liabilities is as follows: | |
Segment liabilities | 4,162.3 |
Interest bearing instruments | 11,541.3 |
Unallocated corporate liabilities | 1,387.7 |
Total liabilities | 17,091.3 |
10