SECOND QUARTERLY REPORT
Quarterly report on consolidated results for the six months ended 30 June 2024. The figures have not been audited.
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2024
INDIVIDUAL | CUMULATIVE | ||||
QUARTER | PERIOD | ||||
Second quarter ended | Six months ended | ||||
30 June | 30 June | ||||
2024 | 2023 | 2024 | 2023 | ||
RM'000 | RM'000 | RM'000 | RM'000 | ||
Revenue | 2,669,450 | 2,474,531 | 5,434,364 | 4,758,018 | |
Cost of sales | (1,986,882) | (1,867,052) | (4,012,882) | (3,618,516) | |
Gross profit | 682,568 | 607,479 | 1,421,482 | 1,139,502 | |
Other income | 123,730 | 299,830 | 242,450 | 397,973 | |
Other expenses | (360,767) | (350,881) | (738,738) | (689,300) | |
Other gains/(losses) - net | 23,628 | (228,694) | (117,825) | (259,750) | |
Profit from operations before impairment | |||||
losses | 469,159 | 327,734 | 807,369 | 588,425 | |
Impairment losses | (22,069) | (209) | (23,399) | (3,668) | |
Profit from operations | 447,090 | 327,525 | 783,970 | 584,757 | |
Finance costs | (178,926) | (158,796) | (325,276) | (307,225) | |
Share of results in associates | (63,279) | (72,092) | (136,641) | (139,560) | |
Share of results in a joint venture | (1,750) | (1,268) | (2,986) | (1,313) | |
Profit before taxation | 203,135 | 95,369 | 319,067 | 136,659 | |
Taxation | (140,428) | (65,095) | (219,671) | (151,794) | |
Profit/(loss) for the financial period | 62,707 | 30,274 | 99,396 | (15,135) | |
Profit/(loss) attributable to: | |||||
Equity holders of the Company | 82,237 | 47,123 | 140,020 | 19,744 | |
Non-controlling interests | (19,530) | (16,849) | (40,624) | (34,879) | |
62,707 | 30,274 | 99,396 | (15,135) | ||
Earnings per share (sen) for | |||||
profit attributable to | |||||
equity holders of the Company: | |||||
- Basic | 1.45 | 0.83 | 2.47 | 0.35 | |
- Diluted | 1.45 | 0.83 | 2.47 | 0.35 | |
(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 SIX MONTHS ENDED 30 JUNE 2024
INDIVIDUAL | CUMULATIVE | ||||
QUARTER | PERIOD | ||||
Second quarter ended | Six months ended | ||||
30 June | 30 June | ||||
2024 | 2023 | 2024 | 2023 | ||
RM'000 | RM'000 | RM'000 | RM'000 | ||
Profit/(loss) for the financial period | 62,707 | 30,274 | 99,396 | (15,135) | |
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 | (34,384) | 593,521 | 256,056 | 709,952 | |
Other comprehensive (loss)/income for | |||||
the financial period, net of tax | (34,384) | 593,521 | 253,093 | 709,952 | |
Total comprehensive income for the | |||||
financial period | 28,323 | 623,795 | 352,489 | 694,817 | |
Total comprehensive income/(loss) | |||||
attributable to: | |||||
Equity holders of the Company | 44,243 | 680,410 | 416,039 | 775,078 | |
Non-controlling interests | (15,920) | (56,615) | (63,550) | (80,261) | |
28,323 | 623,795 | 352,489 | 694,817 | ||
(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 JUNE 2024
UNAUDITED | |||
As at | As at | ||
30.06.2024 | 31.12.2023 | ||
RM'000 | RM'000 | ||
ASSETS | |||
Non-current assets | |||
Property, plant and equipment | 14,301,457 | 14,497,479 | |
Land held for property development | 175,487 | 176,266 | |
Investment properties | 1,226,520 | 910,345 | |
Intangible assets | 4,296,327 | 4,253,220 | |
Right-of-use assets | 581,613 | 604,100 | |
Associates | 2,328,120 | 1,935,973 | |
Joint venture | 38,701 | 41,687 | |
Financial assets at fair value through other comprehensive income | 69,989 | 70,982 | |
Financial assets at fair value through profit or loss | 101,706 | 50,270 | |
Other non-current assets | 375,426 | 355,691 | |
Deferred tax assets | 42,524 | 43,221 | |
23,537,870 | 22,939,234 | ||
Current assets | |||
Inventories | 194,452 | 179,098 | |
Trade and other receivables | 527,047 | 611,881 | |
Amount due from holding company | 304 | - | |
Amounts due from related companies | 2,114 | 603 | |
Amounts due from an associate | 106,250 | 92,570 | |
Derivative financial instruments | 134 | - | |
Restricted cash | 10,582 | 615 | |
Cash and cash equivalents | 5,376,274 | 3,884,950 | |
6,217,157 | 4,769,717 | ||
Assets classified as held for sale | 1,161,116 | 1,407,052 | |
7,378,273 | 6,176,769 | ||
TOTAL ASSETS | 30,916,143 | 29,116,003 | |
EQUITY AND LIABILITIES | |||
Equity attributable to equity holders of the Company | |||
Share capital | 1,764,424 | 1,764,424 | |
Reserves | 11,904,649 | 11,998,707 | |
Treasury shares | (935,660) | (935,660) | |
12,733,413 | 12,827,471 | ||
Non-controlling interests | (878,910) | (815,360) | |
TOTAL EQUITY | 11,854,503 | 12,012,111 | |
Non-current liabilities | |||
Other long-term liabilities | 212,390 | 195,371 | |
Long term borrowings | 14,002,027 | 12,075,997 | |
Lease liabilities | 667,589 | 690,112 | |
Deferred tax liabilities | 1,020,843 | 996,961 | |
15,902,849 | 13,958,441 | ||
Current liabilities | |||
Trade and other payables | 2,670,056 | 2,791,968 | |
Amount due to holding company | 25,387 | 30,434 | |
Amounts due to related companies | 45,354 | 53,735 | |
Amounts due to associates | 331 | - | |
Short term borrowings | 208,529 | 140,584 | |
Lease liabilities | 104,069 | 94,567 | |
Taxation | 105,065 | 34,163 | |
3,158,791 | 3,145,451 | ||
TOTAL LIABILITIES | 19,061,640 | 17,103,892 | |
TOTAL EQUITY AND LIABILITIES | 30,916,143 | 29,116,003 | |
NET ASSETS PER SHARE (RM) | 2.25 | 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 SIX MONTHS ENDED 30 JUNE 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 | |
At 1 January 2024 | 1,764,424 | (83,898) | 2,466,011 | (935,660) | 9,616,594 | 12,827,471 | (815,360) | 12,012,111 |
Profit for the financial period | - | - | - | - | 140,020 | 140,020 | (40,624) | 99,396 |
Other comprehensive (loss)/income | - | (2,963) | 278,982 | - | - | 276,019 | (22,926) | 253,093 |
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
Total transactions with owners
At 30 June 2024
- | (2,963) | 278,982 | - | 140,020 | 416,039 | (63,550) | 352,489 |
- | - | - | - | (510,097) | (510,097) | - | (510,097) |
- | - | - | - | (510,097) | (510,097) | - | (510,097) |
1,764,424 | (86,861) | 2,744,993 | (935,660) | 9,246,517 | 12,733,413 | (878,910) | 11,854,503 |
(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 SIX MONTHS ENDED 30 JUNE 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 for the financial period | - | - | - | - | 19,744 | 19,744 | (34,879) | (15,135) | |
Other comprehensive income/(loss) | - | - | 755,334 | - | - | 755,334 | (45,382) | 709,952 | |
Total comprehensive income/(loss) for the financial period | - | - | 755,334 | - | 19,744 | 775,078 | (80,261) | 694,817 | |
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) | |
Total transactions with owners | - | - | (3,841) | 8,749 | (514,747) | (509,839) | - | (509,839) | |
At 30 June 2023 | 1,764,424 | (83,898) | 2,616,589 | (935,660) | 9,539,601 | 12,901,056 | (787,048) | 12,114,008 | |
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GENTING MALAYSIA BERHAD
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
UNAUDITED | ||||
Six months ended | ||||
30 June | ||||
2024 | 2023 | |||
RM'000 | RM'000 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Profit before taxation | 319,067 | 136,659 | ||
Adjustments for: | ||||
Depreciation and amortisation | 618,492 | 617,841 | ||
Property, plant and equipment written off | 5,065 | 1,662 | ||
Net gain on disposal of property, plant and equipment | (1,758) | (183,234) | ||
Finance costs | 325,276 | 307,225 | ||
Interest income | (62,898) | (42,225) | ||
Dividend income | (553) | (3,099) | ||
Impairment losses | 23,399 | 3,668 | ||
Provision of retirement gratuities | 20,227 | 8,834 | ||
Employee share grant scheme expenses | - | 258 | ||
Share of results in associates | 136,641 | 139,560 | ||
Share of results in a joint venture | 2,986 | 1,313 | ||
Net exchange loss - unrealised | 127,351 | 278,611 | ||
Income from capital award | (99,836) | (94,090) | ||
Other non-cash items and adjustments | (3,624) | (3,534) | ||
1,090,768 | 1,032,790 | |||
Operating profit before working capital changes | 1,409,835 | 1,169,449 | ||
Net change in current assets | 8,104 | (161,195) | ||
Net change in current liabilities | (95,871) | (27,956) | ||
(87,767) | (189,151) | |||
Cash generated from operations | 1,322,068 | 980,298 | ||
Net tax paid | (82,622) | (69,205) | ||
Retirement gratuities paid | (4,581) | (3,031) | ||
(87,203) | (72,236) | |||
Net Cash Flow from Operating Activities | 1,234,865 | 908,062 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Addition of property, plant and equipment | (277,479) | (342,265) | ||
Addition of investment properties | (13,680) | (18,706) | ||
Investment in financial assets at fair value through profit or loss | (50,000) | - | ||
Investment in associates | (467,200) | - | ||
Restricted cash | (10,265) | - | ||
Proceeds from disposal of property, plant and equipment | 2,035 | 610,762 | ||
Proceeds from capital award | 64,632 | 63,322 | ||
Interest received | 61,284 | 41,612 | ||
Other investing activities | (240) | 4,304 | ||
Net Cash Flow (Used in)/From Investing Activities | (690,913) | 359,029 |
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings and payment of transaction costs Repayment of lease liabilities
Proceeds from bank borrowings and issuance of Medium-Term Notes Dividend paid
Finance costs paid
Net Cash Flow From/(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
(90,112) (321,514)
(63,876) (58,580)
1,844,304 558,802
(510,097) (510,097)
(277,891) (271,355)
902,328 (602,744)
1,446,280 664,347
3,884,950 3,043,708
45,044124,079
5,376,274 3,832,134
2,458,798 2,044,161
2,917,476 1,787,973
5,376,274 3,832,134
(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 - SECOND QUARTER ENDED 30 JUNE 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 six months ended 30 June 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
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 Medium Term Notes ("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.
Other than the above, there were no other material issuance, cancellation, repurchase, resale or repayments of debts or equity securities for the six months ended 30 June 2024.
7
f) Dividend Paid | |
Dividend paid during the six months ended 30 June 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.
Segment analysis for the six months ended 30 June 2024 is set out below:
Revenue
Total revenue
Inter segment
External
Adjusted EBITDA/(LBITDA)
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 | |
3,366.4 | 911.2 | 1,046.2 | 5,323.8 | 53.0 | 143.0 | 5,519.8 | |
(2.8) | - | - | (2.8) | (3.8) | (78.8) | (85.4) | |
3,363.6 | 911.2 | 1,046.2 | 5,321.0 | 49.2 | 64.2 | 5,434.4 | |
1,108.4 | 138.7 | 330.1 | 1,577.2 | 13.1 | (165.8) | 1,424.5 | |
RM | GBP | USD | RM/USD | ||||
5.9810 | 4.7286 | 4.7286 |
During the six months ended 30 June 2024, revenue from the leisure & hospitality segment of RM5,321.0 million comprised gaming revenue and non-gaming revenue of RM3,881.8 million and RM1,439.2 million respectively. Non-gaming revenue included hotel room revenue which is recognised when services are rendered to the customers over their stay at the hotel, F&B revenue which is recognised when the services are rendered to the customers, rental income which is recognised on a straight-line basis over the lease term and attractions revenue which is recognised when tickets are sold.
8
-
Segment Information (Cont'd)
A reconciliation of adjusted EBITDA to profit before taxation is provided as follows:
RM'Mil
Adjusted EBITDA for reportable segments Pre-operating expenses
Property, plant and equipment written off Impairment losses
Net gain on disposal of property, plant and equipment Others
EBITDA
Depreciation and amortisation Interest income
Finance costs
Share of results in associates and joint venture
Profit before taxation
1,424.5
(56.7)
(5.1)
(23.4)
1.8
(1.5)
1,339.6
(618.5)
62.9
(325.3)
(139.6)
319.1
Segment Assets
Leisure & Hospitality
United | ||
United | States | |
Kingdom | of America | |
and | and | |
Malaysia | Egypt | Bahamas |
RM'Mil | RM'Mil | RM'Mil |
11,075.4 | 4,295.2 | 6,674.4 |
Total
RM'Mil
22,045.0
Property Investments | Total |
& Others |
RM'Mil | RM'Mil | RM'Mil |
1,556.1 826.1 24,427.2
Segment Liabilities
Main foreign currency
Exchange ratio of 1 unit of foreign currency to RM
2,009.6 | 956.4 | 463.5 | 3,429.5 | 171.6 | 124.1 | 3,725.2 |
RM | GBP | USD | RM/USD | |||
5.9633 | 4.7195 | 4.7195 |
RM'Mil | |
A reconciliation of segment assets to total assets is as follows: | |
Segment assets | 24,427.2 |
Interest bearing instruments | 2,904.2 |
Associates | 2,328.1 |
Joint venture | 38.7 |
Assets classified as held for sale | 1,161.1 |
Unallocated corporate assets | 56.8 |
Total assets | 30,916.1 |
A reconciliation of segment liabilities to total liabilities is as follows:
Segment liabilities | 3,725.2 | |
Interest bearing instruments | 14,210.6 | |
Unallocated corporate liabilities | 1,125.8 | |
Total liabilities | 19,061.6 | |
9 | ||
-
Property, Plant and Equipment
During the six months ended 30 June 2024, acquisitions (including capitalised interest) of property, plant and equipment by the Group were RM242.5 million. - Material Event Subsequent to the end of Financial Period
On 10 July 2024, GENM Capital had early redeemed RM1.3 billion in nominal value of the RM2.4 billion in nominal value of the MTNs issued on 24 August 2015 under the MTN Programme.
Other than the above, there were no other material events subsequent to the end of the six months ended 30 June 2024 that have not been reflected in this interim financial report. - Changes in the Composition of the Group
There were no material changes in the composition of the Group for the six months ended 30 June 2024. - Changes in Contingent Liabilities or Contingent Assets
There were no material changes in the contingent liabilities or contingent assets since the last financial year ended 31 December 2023. - Capital Commitments
Authorised capital commitments not provided for in the financial statements as at 30 June 2024 are as follows:
RM'Mil | |
Contracted | 613.4 |
Not contracted | 2,325.0 |
2,938.4 | |
Analysed as follows: | |
- Property, plant and equipment | 2,938.4 |
10