The 2024 Q3 results from Genting Berhad, the Malaysian gaming company behind Resorts World, have revealed Resorts World Las Vegas experienced its worst financial quarter in two years.
In its Q3 filing, Genting Berhad blamed “an abnormally hot summer in Las Vegas and economic uncertainty in an election year” for the poor performance.
Revenues dropped from $218 million in Q2 to $177 million in Q3, while earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from $50 million to $16 million. Also, hotel occupancy dropped from 91.1% to 85.1%, with the average room rate slipping from $246 to $244.
However, Resorts World Las Vegas’ operating company was keen to point out that the poor Q3 performance had not derailed the property from its projection to increase average room rates in fiscal year 2024 compared to FY 2023. The average room rate, including the Q3 results for FY 2024, still sits at $267, higher than the $256 in FY 2023.
Genting Berhad’s filing also cited reasons for optimism.
“Future projects such as additional dining, entertainment, retail offerings and new performances at the Resorts World Theatre are expected to drive significant foot traffic in the remainder of 2024 and beyond,” read the report. “RWLV remains focused on growth opportunities, including ongoing efforts to expand RWLV’s database for casino and resort marketing to yield high net worth customers and drive repeat visitation, grow with established and new convention groups to deliver high margin group business and invest in new dining concepts, entertainment and retail offerings to drive operating leverage.”
Resorts World Las Vegas was not the only segment of the company to struggle, with a 5% decline in revenues from Q2 to Q3 across most business sectors. That amounted to Genting Berhad collecting $1.46 billion during Q3. Adjusted EBITDA was hit even harder, with a 15% drop to $418 million, which came from declines in the U.S., Malaysia, and Singapore.
However, Genting Berhad showed some positive signs, with its U.K. and Egypt resort segments showing growth, even if this was offset by losses elsewhere.
Poor financial results come amid legal trouble
Resorts World Las Vegas’ poor Q3 results come after the Nevada Gaming Control Board (NGCB) filed a disciplinary complaint against the property and its parent company for allowing individuals with suspected or proven links to illegal activities to gamble at Resorts World Las Vegas.
The NGCB statement at the time said a lack of compliance at Resorts World Las Vegas allowed “certain individuals with suspected or actual ties to illegal bookmaking, histories of federal felony convictions related to illegal gambling businesses, and ties to organized crime.”
It has recently been revealed that Resorts World Las Vegas has received an extension on its deadline to respond to the formal complaint from the NGCB. The NGCB has recently been cracking down on illegal and problem gambling in the Silver State, holding a workshop in September to discuss the prospect of banning players ejected from a property from ever collecting winnings from a casino jackpot.
The NGCB, along with the Nevada Gaming Commission, regulates the state’s gambling industry, including online and land-based casinos and Nevada sports betting.
