Genting Malaysia close to reopening
Amid a decline in Covid-19 cases and an easing of restrictions, analysts expect Genting Malaysia’s Resorts World Genting to reopen soon.
Malaysia.- Genting Malaysia could reopen the doors of its Resorts World Genting venue soon if the vaccination rates continue rising and authorities allow an easing of Covid-19 countermeasures.
As number forecast operators (NFOs) were allowed to restart operations from September 15, Kay Hian, local brokerage house UOB, believes Resorts World Genting is likely to reopen soon too.
He also expects there will be a quick recovery due to suppressed demand, saying: “With the nation’s encouraging vaccination milestones, we are optimistic that the NFOs will chart an uninterrupted swift earnings recovery and meaningful capital appreciation.”
It’s expected that an increase in vaccination rates will help the recovery of the sector by the fourth quarter of the current year. For now, 54 per cent of the population have received two doses of a Covid-19 vaccine.
Resorts World Genting‘s casino has been closed since May. It closed all of its services in June, after Malaysian Prime Minister announced a nationwide Covid-19 lockdown. Until then, the resort’s hotels, food and beverage outlets, shopping malls, retail outlets and other facilities remained open.
Genting Malaysia posts US$82.8m loss for Q2
The casino operator has shared financial results for the second quarter of 2021, showing a reduced loss of MYR348.1m (US$82.8m) when compared to a loss of MYR900.4m in Q2 2020.
For the second quarter of 2021, revenue grew 611.7 per cent year-on-year from MYR114.9m to MYR817.9m (US$195m). However, revenue for the first half was down 30.4 per cent, from MYR2.07bn to MYR1.44bn.
Gaming revenue for the first half was MYR1.14bn, down 23.3 per cent year-on-year. The leisure and hospitality business saw revenue rise by MYR155.7m when compared to the previous year.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the second quarter was positive by MYR45.6m. In the second quarter of 2020, the company recorded an adjusted EBITDA loss of MYR486.2m. For the first six months of 2021, Genting Malaysia saw a negative EBITDA of MYR64.8m (US$42.2m).
