Analysts at Affin Hwang Capital have predicted that Genting Singapore earnings could be lower than expected due to the new Omicron Covid-19 variant.
Singapore.- Analysts at Affin Hwang Capital have lowered their profit forecast for Genting Bhd for the 2021-23 fiscal year due to the risk that the new Covid-19 Omicron variant will affect earnings. The new variant has forced some governments to implement stricter border controls, which may inhibit the recovery of international tourism.
Before the Covid-19 pandemic, Affin Hwang Capital estimated that foreign tourists accounted for about 70 per cent of Genting Singapore’s total tourist arrivals.
According to Asian Gaming Brief, analysts stated: “Over the past few quarters, without significant tourist contributions, Genting Singapore was able to regain only 43 per cent of its pre-pandemic revenue, mainly from local visitation, but had remained relatively stagnant since then.”
Genting will remain affected by China’s zero-Covid policy
As previously reported by Focus Gaming News, analysts at Nomura Research have predicted the company will remain affected by China’s zero-Covid policy the next year even if Singapore reopens for international travel. The company has a positive attitude toward the operator of Resorts World Sentosa but believes it could be some time before Chinese citizens can travel again.
According to data from the Singapore Tourism Board, China was the largest source country for international tourism in Singapore in 2019, with visitors spending $4.1bn.