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Last weekend, I spent RM500. This week, Genting posts huge losses in Q2. THINK.

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When was your last trip up Genting Highlands resort? Resorts World Genting was opened in 1965. That’s in the year of Snake according to the Chinese Zodiac. 12 years after that, I was born. 36 years later, my daughter was born. Haha. When I was younger, I used to go up once probably every few years. My father would drive up Genting Highlands in his Nissan Sunny 130 and later on Nissan Sunny 130Y.

The theme park was outdoor and I was up the roller-coaster 2 times and both times, it scared me to the max. The only other time I went up another roller coaster was in 1998 in Disneyland France. No more… okay. So, I guess we (my father and I) have been spending our money up there since the times when I was younger and today when my kids are young. In 2019, I contributed to Genting’s revenues too.

Pre-Covid 19 visits to Genting Highlands

I am a serial Genting Highlands visitor before COVID-19 came. In 2019, I visited Genting Highlands probably 5 times. Watching concerts (my wife and my friends watched while I watch the kids), in-laws came visiting, kids love to play in Skytropolis, my wife and I love the cooling weather, it’s less than an hour away plus in 2019, the room rates were either very low or free with my Genting Card. (image)

Assuming a spending of RM500 per visit (since room rate is very low anyway), I would have contributed a revenue of RM2,500 to Genting Highlands in 2019. It’s always full every time I visited too. Okay, i also go up every September usually to get my free mooncakes too courtesy of points from my Genting Card.

2020 visit

I visited Genting for the very first time last weekend. Yes, got 4 mooncakes as per usual due to the accumulated points. You get points from buying stuffs, eating there plus going into the casino too. Image shows the mooncake set. Pretty decent and we get to choose the flavours we like. Want to know what’s the condition like in Genting Highlands? Are there lots of people? Actually not as many as my previous trips but nevertheless, it’s crowded enough. Photos as below:

Skytropolis – full of people
Skytropolis – where kids have fun

Article in themalaysianreserve.com In 2Q 2019, Genting Bhd reported a profit before tax (PBT) of RM1.33 billion. (this was when I was there 5 times…). For 2Q 2020, it has reported a loss before tax (LBT) of RM1.66 billion. This loss was due mainly to LBITDA and higher impairment losses recorded, as well as a share of loss from joint ventures and associates in 2Q20 compared to a share of profit in 2Q19. Revenue for the group has plunged 80% to RM1.11 billion for 2Q 2020 from RM5.45 billion in 2Q 2019. Do read the full report here: Article in themalaysianreserve.com

Conclusion?

If we look at how many COVID-19 vaccines are on its way as well as the fact that international borders remain closed, I do think Resorts World Genting will continue to be extra popular even if its new outdoor theme park opening is delayed further. Anyway, there are today many more property developments up there too and that could only mean an even more stable business as the number of visitors will continue to increase too.

I know, some would point out that its cruise business will be taking a much longer time to recover. These are all the additional considerations if we have any intention to think about buying its shares which has been battered badly thus far. I do not have any Genting Berhad (Genting) or Genting Malaysia (GenM) shares currently. Perhaps I should read a bit more and visit it one more time before deciding? What about you? Please share your thoughts yeah.

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Next suggested article: Earlier, way before everyone anticipated COVID-19. Visitors to Genting in 2019

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