Genting revenue in Malaysia and Singapore to reach 85-90% of 2019 levels

Fitch Ratings notes the increase in visitors at Genting Group’s casino resorts.

Singapore.- Analysts at Fitch Ratings have predicted that Genting Group revenue from its resorts in Malaysia and Singapore could reach 85-90 per cent of pre-pandemic levels this year. Fitch noted these key assets have seen a rise in visitor numbers following the relaxation of Covid-19-related restrictions. 

The positive outlook is further supported by Genting Group’s strategic workforce reduction in Malaysia, which is anticipated to offset wage inflation and improve earnings before interest, taxation, depreciation, and amortization (EBITDA) margins compared to 2019.

However, Fitch cautioned that the EBITDA margin in Singapore may not fully recover to pre-pandemic levels in the next three years due to an increase in gaming tax implemented in the second quarter of 2022. Despite this, Fitch expressed confidence in Genting Group’s ability to improve its leverage throughout the year, supported by the consolidation of its subsidiaries and anticipated growth in key markets.

Genting Group’s parent company, Genting Bhd, is expected to enhance its credit profile and leverage its position as the sole casino licence holder in Malaysia, benefiting from a strong domestic visitor base. Fitch also highlighted the potential expansion of Genting’s presence in New York, with its subsidiary Genting New York LLC possibly bidding for a full-scale casino licence in the state. 

The rating agency acknowledged the competitive nature of the New York market but said Genting Bhd’s credit profile remained supported by its well-established position and strategic advantages.

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