Genting Malaysia 3rd quarter Lower than 2nd Quarter as Flagship Resort Stays Closed

Genting Malaysia 3rd quarter Lower than 2nd Quarter as Flagship Resort Stays Closed

On Friday, banking group Nomura noted that Genting Malaysia’s 3rd quarter revenues would probably be worse than in the 2nd quarter mainly because their flagship casino resort, Resorts World Genting, remained closed all through June as a measure to reduce the spread of Covid 19.

The resort complex had already been shut from May, extending into the first two months of the third quarter, and is now expected to last for all of it.

According to two analysts at Nomura, Alpa Aggarwal and Tushar Mohata, Genting Malaysia supposedly loses about MYR3.5 million (US$834,900) each day “including interest” during the resort’s closure.

In their 2nd quarter filing on Thursday, the group states that they had greatly reduced their year-on-year loss to about MYR348.1 million largely due to the wide reopening of its casino venues in other countries like the United Kingdom and the United States.

However, the Malaysian operations were reportedly still registering losses at low EBITDA levels because of the temporary closure of the casino complex since May and continued travel bans.

Some experts anticipate that Resorts World Genting will remain closed for two more months until at least November, as noted by Maybank Investment Bank Bhd on Friday, following the statement about Genting’s 2nd quarter numbers.

Others at Nomura are somewhat confident that reopening will happen sooner, by the end of September or early October. This is based on increased vaccination rates, especially in surrounding areas. They noted that policymakers would also be conscious that the closure has been extended for a long time.

If these predictions are correct, Maybank analyst Samuel Yin Shao Yang noted that the group could start to narrow its losses in the 4th quarter as more visitors return to the Resorts World Genting resort.