Genting Group is a Malaysian gaming company that recently released its financial performance report for the first half of 2022. According to the report data, although Genting Group's revenue continued to grow, its profit growth rate was slow, which put it under certain pressure.
Specifically, Genting Group's revenue in the second quarter increased by 13.7% year-on-year to approximately HK$42 billion, and achieved a small profit, successfully turning losses into profits. However, due to the impact of losses in the first quarter, profits in the first half of the year were still relatively limited.
Genting Group's main source of income is the leisure and hotel business in the Malaysian market. The continued growth in performance of this segment has played a key role in promoting the revenue growth of the entire company.
Genting Group is facing certain pressure in terms of profits. First, with the increase in labor costs and operating expenses, the company's profit margin has been compressed. Secondly, the group borrowed a large amount of US dollars, and the appreciation of the US dollar caused it to incur exchange rate losses of up to HK$4.4 million. This result caused the group's EBITDA to decline sharply, indicating that the company's profitability has been affected.
Based on the analysis excluding exchange rate factors, Genting Group's core net profit is expected to reach approximately HK$2 million. However, the actual profit growth rate affected by exchange rates was lower than expected, indicating that Genting Group's operating performance was affected by exchange rate fluctuations.
However, Genting Group still announced an interim dividend and expects the dividend distribution to be higher in the second half of the year. In addition, the industry is also optimistic about the possibility of the company obtaining a New York casino license.
