Resorts World Las Vegas sees first full quarter revenue results at $175M, still hit by Nevada's restrictions
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As Genting issued its financial reports for the third quarter of 2021 on Thursday, much attention went to its $4.3 billion US flagship property,Resorts World Las Vegas, which posted its financial results for its first full quarter of operations since opening on June 24. The state-of-the-art casino posted revenue of $175 million and Adjusted EBITDA of $27 million, with a number of attractions still yet to open.
RWLV is the first integrated resort to be built on the Vegas Strip in over a decade, combining 3,506 guest rooms and suites across three hotels including Las Vegas Hilton, Conrad Las Vegas and Crockfords Las Vegas. It features over 40 food and beverage venues, world-class entertainment and next-gen gaming technology.
Performance of RWLV was partly negatively impacted by Nevada’s mandate to require face masks while in public indoor spaces regardless of vaccination status, Genting representatives stated. The hotel occupancy rate was 54.9% through Q3, as many conventions and social events were canceled “as a result of the mandate.”
Revenue from the property came from the casino and a number of amenities, including the Zouk Nightclub, the spa, retail outlets and restaurants, which all opened during the quarter. Additional retail, restaurants and The Theatre at RWLV are set to open in the fourth quarter.
Genting Group's revenue was $827.5 million, an increase of 6% compared with the previous year’s corresponding quarter. However, Adjusted EBITDA for the period was $214.1 million, a figure down 17% versus 2020.
In its report, Genting said both its US and UK gaming operations saw improvements, helping drive revenue during Q3. The company’s UK leisure and hospitality businesses experienced higher profits due to the re-opening of Genting Malaysia Berhad, the group’s land-based casinos in the region since mid-May 2021, and the progressive easing of Covid-19 restrictions.
Meanwhile, the leisure and hospitality businesses in the US and Bahamas recorded higher revenue in 2021 versus 2020 mainly due to “the strong operating performance” of Resorts World Casino New York City since the full lifting of restrictions in June, plus contributions from RWLV. The New York venue has even achieved revenue surpassing pre-pandemic levels.
These results were, however, slightly offset by declines in revenue in Malaysia and Singapore, attributable to Covid-19-related closures and restrictions. Revenue and EBITDA of Resorts World Sentosa dropped due to a series of mandates to curb the surge of new community cases, including reduction in group size for social gatherings and prohibition of dining at food and beverage establishments.
As a result, most revenue from leisure and hospitality came from UK and Egypt operations at $95.9 million, and US businesses at $85.9 million, while in contrast revenue from Malaysia was only $4.1 million. Malaysia operations are Genting’s usual chief source of earnings.
Nevertheless, the group said it was “encouraged” by a positive customer reception following the resumption of business at Resorts World Genting since September 30. Moreover, the Malaysia division announced that work for the SkyWorlds outdoor theme park at the venue was targeted to be complete “by the end of 2021.”
