Analysts cut revenue forecast for Genting Malaysia

Nomura has revised its forecast to US$1.26bn in revenue for 2021.

Malaysia.- According to Nomura analysts, Genting Malaysia’s revenue for 2021 could reach MYR5.25bn (US$1.26bn), down from a previous forecast of MYR6.32bn (US$1.54bn).

They have revised their forecast due to a new rise in Covid-19 cases, which has lead to the temporary closure of the Resorts World Genting’s (RWG) casino until further notice.

Nomura predicts Genting Malaysia will post a net loss of MYR651m and adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of MYR844m. In March, Nomura had predicted a loss of around MYR184m (US$45m). 

The Ministry of Health has recently reported a total of 6,999 new cases of Covid-19 in the last 24 hours.

The government’s Movement Control Order 3.0 orders people to work from home and limit the operating hours.

Genting Malaysia had been criticised by two opposition politicians for previously continuing to operate while the country was seeing a rise in Covid-19 cases. It has since closed its casino.

The company said: “We will continue to fully adhere to the strict standard operating procedures issued by the Government throughout the resort and we seek our guests’ cooperation to do the same.”

Genting Malaysia previously closed for two weeks in February due to a wave of Covid-19 infections.

Genting Malaysia posts revenue of US$150.5m in Q1

Genting Malaysia‘s financial results for the first quarter of 2021 showed that revenue declined 68 per cent year-on-year, from MYR1.96bn to MYR623.3m (US$150.5m).

Revenue was also 40 per cent down when compared to the previous quarter.

Genting Malaysia registered losses attributable to shareholders of MYR483.6m (US$116.7m), while last year it reported a loss of MYR418m.

Genting Malaysia blamed the Covid-19 pandemic for the results, stating: “The adverse impact to the group’s earnings was primarily due to the temporary closure of the group’s businesses in Malaysia and the UK.

“The group’s properties also operated at a reduced capacity in compliance with the respective government directives amid the pervasiveness of the Covid-19 pandemic.”

For the first quarter, the company reported negative EBITDA of MYR110.4m (US$27m) while in the last four months of 2020 Genting Malaysia saw positive EBITDA of MYR170.4m (US$42.2m).

Genting Malaysia gaming revenue was MYR490.2m, while the non-gaming segment revenue was MYR110.8m.

In 2020, Genting Malaysia saw EBITDA fall 69.1 per cent to MYR350.3m as revenue declined 57.3 per cent to MYR4.53bn.