Genting Berhad is doubling down on efforts to improve profitability at its flagship US property, Resorts World Las Vegas (RWLV), after a dismal fourth quarter that saw earnings nosedive. Despite a slight sequential revenue bump, the resort’s EBITDA barely broke even, signaling ongoing challenges in the highly competitive Las Vegas market.
Revenue Stalls, Earnings Crumble
Resorts World Las Vegas generated $190 million in revenue for the quarter ending December 31, 2024. While that marked a small improvement from $177 million in Q3, it was a steep drop from $241 million in Q4 2023. The real concern, however, was the collapse of EBITDA, which came in at just $1 million—a far cry from $16.2 million in Q3 and $58.2 million a year earlier.
Genting Berhad, the Malaysian conglomerate that owns RWLV, acknowledged the poor performance and outlined its strategy for improvement. The company emphasized “strategic growth and operational efficiencies” as key focus areas to boost margins moving forward.
Why Are Resorts World’s Margins Under Pressure?
Several factors have contributed to the financial struggles of the $4.3 billion resort, which opened its doors in 2021.
- Increased competition: The Las Vegas Strip has seen heightened competition, with older properties undergoing renovations and new entrants attracting high-end clientele.
- Weaker demand in certain segments: While Vegas remains a tourist hotspot, RWLV has struggled to carve out a loyal customer base among high-rollers and mass-market gamblers.
- Rising operational costs: Inflationary pressures and labor costs have eaten into profits, making margin expansion difficult.
While RWLV has premium offerings, including luxury accommodations and high-end dining, it hasn’t yet reached the level of sustained profitability seen in other top-tier Strip resorts.
Comparing RWLV’s Performance to Other Las Vegas Giants
To put things into perspective, here’s how RWLV’s Q4 EBITDA stacks up against other major players in Las Vegas:
| Property | Q4 2024 EBITDA | Year-over-Year Change |
|---|---|---|
| Resorts World Las Vegas | $1 million | -98.3% |
| MGM Resorts International | $963 million | +4.7% |
| Caesars Entertainment | $545 million | +3.2% |
| Wynn Las Vegas | $348 million | +2.9% |
RWLV’s performance is a stark contrast to its competitors, most of whom have maintained strong earnings growth despite broader economic concerns.
What’s Next for Resorts World Las Vegas?
Genting Berhad remains optimistic despite the financial downturn. The company’s latest statement suggests it will focus on:
- Improving efficiency: Cutting unnecessary costs and streamlining operations to boost margins.
- Strategic growth initiatives: Identifying new revenue streams, including potential partnerships or expanded entertainment offerings.
- Customer acquisition efforts: Targeting a more consistent and profitable customer base, possibly through revised marketing strategies or loyalty programs.
Las Vegas is known for its cyclical nature, with properties experiencing ups and downs depending on economic conditions, tourism trends, and competitive dynamics. For RWLV, 2025 will be a crucial year to prove whether it can stabilize and generate sustainable profits.
