Malaysia: gaming earnings could pick up by year-end

Resorts World Genting (RWG) has been closed since May.
Resorts World Genting (RWG) has been closed since May.

Analysts predict Malaysian gaming earnings will start to recover by the end of the current year.

Malaysia.- Malaysia continues to battle Covid-19 but analysts believe the gaming industry should start to see an improvement by the end of the current year.

UOB Kay Hian analysts said: “Though casinos are expected to reopen later than number forecast operators, the casino segment offers substantial returns which extend through 2022.”

The recovery of the gaming sector will be highly attached to the reopening of Malaysia’s borders, which analysts expect will occur between August and September.

Resorts World Genting remains closed 

Resorts World Genting‘s casino has been closed since Macy. It closed all of its services in June, after Malaysian Prime Minister Muhyiddin Yassin 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.

Nomura analysts have predicted Genting Malaysia will post a net loss of MYR651m for the year, and adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of MYR844m. 

Analysts said revenue could reach MYR5.25bn (US$1.26bn), down from a previous forecast of MYR6.32bn (US$1.54bn).

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Covid-19 land-based casino Resorts World Genting