Analysts at Nomura have predicted the casino operator will start to see a recovery in the last quarter of the year.
Malaysia.- Genting Malaysia has reported that revenue for the third quarter of the year was down 42 per cent year-on-year to MYR826.3m ($194.8m). Its net loss contracted to MYR289m from MYR705m registered in the same quarter in 2020. It turned an EBITDA loss of MYR165m compared to profit of MYR425m in Q3 2020 amid several Covid-19 lockdowns and countermeasures.
However, analysts at Nomura say earnings for the next quarter will improve, due to the opening of Genting SkyWorlds, new attractions, and gradual international border reopening for Malaysia. Genting Malaysia’s new outdoor theme park has partially opened to employees and some guests.
The park, which is expected to lead to higher visitor arrivals to the IR, could be allowed to open its doors fully at the beginning of next month in time to capture pent-up demand in the run-up to the year-end holidays. Authorities in Malaysia also announced the country will reopen its borders to foreign visitors no later than January 1, 2022.
Malaysian casino industry to see economic rebound in Q4
Casino operators can expect to see better results in Q4, according to analysts. Vincent Khoo, UOB Kay Hian Malaysia head of research, has told The Malaysian Reserve that as the pandemic eases, tourism will be the main beneficiary of the upcoming economic reopening.
He said: “The gaming companies and casino segment is in a sweet spot to capitalise on this post-pandemic leisure boom.”
As for the possible resurgence of Covid-19 cases, he said: “We think that it is unlikely with Malaysia’s stellar vaccination milestone and gradually achieving herd immunity. Authorities have made it clear they intend to restore a semblance of normalcy even without eradicating the virus.”