Maybank Investment Bank believes Resorts World Genting will remain closed for three months due to a rise in Covid-19 cases in Malaysia.
Malaysia.- A week after announcing a temporary closure due to Covid-19 countermeasures, it seems Resorts World Genting will remain closed longer than expected.
According to Maybank Investment Bank, Resorts World Genting will be closed for three months while Malaysia fights against a new wave of Covid-19 cases.
Analysts also predict that the opening of the new theme park Genting Malaysia will be delayed until December.
However, Maybank Investment Bank added that Genting Malaysia’s core net loss will be less than half of the MYR1.44bn loss reported in 2020.
Analysts noted that when Resorts World Genting reopened last year, it quickly saw a rebound. They also said the vaccination rates should begin to rise from June as 16m doses will arrive in the following weeks.
Nomura analysts have predicted Genting Malaysia’s revenue for 2021 could reach MYR5.25bn (US$1.26bn), down from a previous forecast of MYR6.32bn (US$1.54bn).
They have revised their forecast due to a new rise in Covid-19 cases.
In May, Genting Malaysia shared financial results for the first quarter of 2021, showing revenue declined 68 per cent year-on-year, from MYR1.96bn to MYR623.3m (US$150.5m).
Revenue was down 40 per cent when compared to the previous quarter.
Genting Malaysia registered losses attributable to shareholders of MYR483.6m (US$116.7m), while last year it reported a loss of MYR418m.
The company suffered a huge drop in revenue from its leisure and hospitality business in Malaysia – down 76 per cent to MYR299m (US$72m) – while in the UK and Egypt, revenue declined by 89 per cent MYR40.2m (US$10m).
Genting Malaysia blamed the Covid-19 pandemic for the results, stating: “The adverse impact to the group’s earnings was primarily due to the temporary closure of the group’s businesses in Malaysia and the UK.