Brokerage Nomura said it was cutting its 2021 revenue estimate for casino operator Genting Malaysia Bhd by 17% due to additional restrictions aimed at preventing the further spread of COVID-19 in Malaysia. The agency now expects Genting Malaysia to report annual revenue of nearly $5.25 billion ($1.26 billion) from its previous forecast of $6.32 billion.
Nomura also said it expects the casino company to post a net loss of $651 million in 2021, higher than its previously forecast loss of $184 million. It also lowered Genting Malaysia’s adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) forecast for the full year 2021 by 33% to $844 million.
Genting Malaysia is the operator of Resort World Genting Casino Resort (pictured) near Kuala Lumpur. The company reported a first-quarter net loss of 483.6 million yuan this month, down 68.1% from a year earlier.
The company also has casino operations in the United Kingdom and Egypt, as well as in the United States and the Bahamas.
Last week, the group “temporarily closed” its casino in Resort World Genting until further notice due to a new so-called movement control order imposed by the national government as a COVID-19 response measure.
Nomura analysts Tushar Mohata and Alpha Aggarwal said in a note released last week that domestic operations in Genting Malaysia “may remain depressed for at least one to three more months” given the country’s “concerning situation with the current COVID-19 curve” and the country’s “slow pace of vaccination.”
“The more complicated issue is that the government’s recent order to close [Resort World Genting] casinos, it’s not clear what COVID-19 case thresholds should be seen to allow them to reopen.”
Meanwhile, Malaysia’s government on Friday announced a two-week nationwide lockdown to curb the latest surge in COVID-19 infections. The government said most businesses, except for the essential economic and services sectors, would close from June 1.
The country’s return to a tough lockdown follows a record number of daily infections on Saturday with more than 9,000 cases, according to local health officials.
The Nomura team said in a note that stock investors are “likely to overlook” Genting Malaysia’s short-term bumpy earnings as they are “looking through” fiscal 2022 and 2023. Analysts said the company’s outlook after 2021 “looks solid,” with Genting Skyworld outdoor theme parks “currently set to open in Q3 2021 (official guidance: Q3 2021), vaccine availability in key markets, and some inbound tourism initiatives.” 안전한 파워볼사이트
Casino Group told Resort World Genting last week it was “working” to complete the new theme park “in the third quarter of 2021.”