Genting Malaysia recovery a long road ahead: Maybank

Genting Malaysia’s gaming revenue recovery will take longer than expected, due to the continued impact of the coronavirus, according to analysts from Maybank Investment Bank.

“Resorts World Genting has reopened and GENM’s other casinos will reopen soon, in our view. To be sure, we now believe that the recovery in gaming revenues will be a lot more gradual than we initially expected,” said the brokerage in a note on Monday. 

The analysts have doubled its net loss estimates for Genting Malaysia in FY20, while FY21 net profit estimates have been cut 42 percent. It has also trimmed FY22 net profit estimates by 4 percent. 

Resorts World Genting reopened on 19 June, while Genting UK and Resorts World Bahamas are set to reopen on 4 July and 1 July respectively. 

Resorts World New York and Resorts World Catskills have not announced a reopening date, but Maybank said “it is a matter of time” before they do. 

“That said, we opine that social distancing measures imposed at RWG is an indication of things to come and it will limit the recovery of gaming revenues going forward.”

“Next two years will not be easy, said Maybank, “As long as the COVID-19 pandemic is raging globally, we gather that gaming revenues are unlikely to return to FY19 levels in FY21. 

SHARE
Previous articleMacau five-star hotel occupancy down 85 percent in May
Next articleHoiana holds preview opening, while grand opening set for 2021

Related Articles

Resorts World Genting

Local VIPs buoy Genting’s Malaysia operations

Behind the sea of red in Genting Malaysia’s Q3 results, analysts found reason for cheer in the performance of its domestic operations, which generated a positive EBITDA of RM541 million ($133 million) in the quarter.

Genting Malaysia losses at US$182 million in Q3

Genting Malaysia recorded total revenues of over RM1.4 billion (US$354 million) in the third quarter of 2020, representing a 46 percent decline year-on-year. The group registered a net loss of RM726 million (US$182 million).
Resorts World Genting

Outlook brightens from H2, Fitch says

Jurisdictions benefiting from local support will continue to outperform in the first half of next year, with destination markets such as Singapore, Macau and Las Vegas, likely to begin a faster pace of recovery in the second half once vaccines become more widely available, Fitch Ratings said.

Genting Malaysia confirms worker positive for Covid-19

Genting Malaysia's Resorts World Genting said one of its security workers has tested positive for Covid-19 during routine health screening protocols. The company said the worker is receiving treatment at a government hospital and did not interact with guests.

No new casino taxes seen in Malaysia

The Malaysian government is unlikely to further hike casino taxes, as they are already among the highest in the region and the country's only operator, Genting Malaysia, is suffering from the impact of Covid-19, RHB says.
Resorts World Sentosa (file)

Slow Singapore recovery leads to “negative” Genting outlook: S&P

Ratings agency Standard & Poor’s has reaffirmed Genting Malaysia’s BBB rating, but says the outlook is “negative” due to a slower-than-expected recovery in Singapore.

Genting Malaysia seeks to boost domestic demand

Genting Malaysia said it’s seeking to boost domestic demand and visitation at its flagship property in the country, but the overall outlook for the group remains “uncertain.”
“Worst may be over” for Resorts World Genting: RHB

“Worst may be over” for Resorts World Genting: RHB

The “worst” of the crisis may be over for Resorts World Genting, with a significant improvement in visitation since it reopened three months ago, RHB Research said in a note.

Genting Malaysia injects more cash into US-based Empire Resorts

Genting Malaysia is injecting US$150 million in cash into its loss-making US unit Empire Resorts, its gaming facilities temporarily closed in March as a result of the Covid-19 pandemic. This follows a similar cash injection of US$40 million into the unit in March. Empire Resorts owns and operates Resorts World Catskills, a casino resort which […]
New York casinos face strict reopening criteria

New York casinos face strict reopening criteria

Casinos in New York State, including Genting Group’s Resorts World Catskills, will be permitted to open from next Wednesday, though will face strict reopening restrictions.