The drop in visitors to Resorts World Sentosa and Resorts World Genting will hit earnings hard, Maybank IB forecasts.<\/p>\n\n\n\n\n\n\n\n
Malaysia.- Genting Bhd is likely to see its financial-year 2020 earnings before interest, taxation, depreciation and amortisation (EBITDA) fall 70 per cent year-on-year, according to analysts from Maybank IB Research.<\/p>\n\n\n\n
The drop is predicted mainly due to lower Resorts World Sentosa and Resorts World Genting visitor arrivals owing to the Covid-19 outbreak. researcher Samuel Yin Shao Yang said.<\/p>\n\n\n\n
He said the two venues typically accounted for between 80 per cent and 90 per cent of Genting Bhd group earnings.<\/p>\n\n\n\n
As for the future, he said: \u201cWe forecast financial-year 2022 EBITDA to grow by a more gradual 38 per cent year-on-year, as Resorts World Genting\u2019s outdoor theme park opens and ramps up”.<\/p>\n\n\n\n
He noted that Resorts World Sentosa in Singapore had, in earlier trading periods, been strong in the local market so could be more independent of international tourism than other venues.<\/p>\n\n\n\n
Maybank said: \u201cThe main risk to Genting Bhd\u2019s profitability, and [its] environmental, social and governance credentials, continues to be the recurrence of related-party transactions by Genting Malaysia, with the latest being the acquisition of 49 per cent of\u00a0loss-generating Empire Resorts\u00a0[Inc] and increasingly stricter regulations being imposed on Resorts World Sentosa.\u201d<\/p>\n\n\n\n
\u201cWe forecast Empire Resorts to contribute more than MYR100 million [US$24.2 million] in losses per annum.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The drop in visitors to Resorts World Sentosa and Resorts World Genting will hit earnings hard, Maybank IB forecasts.<\/p>\n","protected":false},"author":2,"featured_media":10818,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Maybank IB forecasts a significant 70% year-on-year EBITDA decline for Genting Bhd in FY2020, primarily due to reduced visitor arrivals at Resorts World Sentosa and Resorts World Genting caused by the Covid-19 pandemic. While FY2022 projects a 38% EBITDA growth driven by new attractions, ongoing risks include related-party transactions, particularly the acquisition of loss-generating Empire Resorts, and stricter regulatory compliance for Resorts World Sentosa.","focusai_entities":"Genting Bhd, Maybank IB Research, Samuel Yin Shao Yang, Resorts World Sentosa, Resorts World Genting, Genting Malaysia, Empire Resorts Inc","focusai_location":"Malaysia, Singapore","focusai_target_profile":"ceo_executive (0.9), regulator (0.8), compliance_legal (0.8), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"EBITDA Recovery Drivers","query":"What specific operational efficiencies or market diversification strategies are anticipated to drive the projected 38% EBITDA growth for Genting Bhd in FY2022, beyond the Resorts World Genting theme park opening?"},{"label":"Governance Risk Mitigation","query":"How will Genting Bhd address the recurring related-party transactions, particularly the acquisition of loss-generating Empire Resorts, to mitigate ESG risks and satisfy increasingly stringent regulatory compliance frameworks?"}],"footnotes":""},"categories":[160,163,16333],"tags":[19394,23687,226],"class_list":["post-10816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-finance-news","category-south-east-asia-news","tag-genting-malaysia","tag-genting-singapore","tag-malaysia"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=10816"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10816\/revisions"}],"predecessor-version":[{"id":10820,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10816\/revisions\/10820"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/10818"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=10816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=10816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=10816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}