Genting Malaysia continues to feel the impact of the Covid-19 pandemic. but earnings should improve during the second quarter.
Malaysia.- According to Nomura analysts Tushar Mohata and Alpa Aggarwal, Genting Malaysia will see earnings fall by 10 per cent in 2021.
They predict the casino operator will make a loss of around MYR184m (US$45m) because of restrictions to contain the Covid-19 pandemic.
According to the analysts, revenue will come in at around MYR6.32bn (US$1.54 bn), down from an earlier estimate of MYR7.05bn (US$1.71bn).
Although earnings from Resorts World Genting (RWG) and Resorts World Awana (RWA) will be impacted in the first quarter by Covid-19 countermeasures, Nomura said earnings should improve in Q2 thanks to the roll-out of vaccinations.
Mohata and Aggarwal stated: “We believe that 1Q21 earnings from Malaysian operations will be impacted due to ~1 month closure of the resort due to the movement control order. However, given the reopening since then, and progressive ramp-up of vaccination, revenue/EBITDA momentum should improve thereafter, in our view.
“There remains a possibility that any future wave of COVID-19 infections might impact visitation again later in 2021, but the risks of this happening will dissipate as vaccination ramps up in 2H21.”