Analysts at ratings agency Fitch are expecting Genting Malaysia and Singapore’s revenue to reach 2019 levels in the second half of 2024, and this year their revenue is likely to recover 85 to 90 percent of pre-pandemic levels.

Fitch notes that “Genting’s key assets in Malaysia and Singapore, which together contributed over 60 percent of group EBITDA in 2022, saw visitor numbers rebound from April 2022 after pandemic-led restrictions were lifted.”

“Genting’s workforce reduction in Malaysia should offset wage inflation and allow EBITDAR margins to be better than 2019. However, the Singapore ERITRAR margin is unlikely to recover to pre-pandemic levels in the next three years due to the gaming tax increase from 2Q22.”

The ratings agency also notes that Genting’s credit profile is supported by its position as the sole casino-license holder in Malaysia, where it “benefits from a high share of domestic visitors, and a healthy share in Singapore’s duopolistic market”.

“The rating also incorporates Genting’s robust diversification in terms of gaming assets in the US and the UK, and cash flows from non-gaming businesses such as palm oil and energy.”

Fitch mentions in its memo that Genting Malaysia’s subsidiary, Genting New York LLC may bid for a full-scale casino license in New York.

“We think the process for the award of three downstate licenses, likely to be completed by 1H24, will face intense competition among various operators, and Fitch has not yet factored it in GENT’s forecasts due to significant uncertainty.”

According to the latest financial results, Genting Singapore reported a 220 percent increase in its net profit after taxation to $97 million in 1Q23. Genting Malaysia also reported a 33 percent increase in revenue to $496.51 million in the first quarter of the year, despite registering a loss of $9.87 million.