Asian casino operator Genting Malaysia Berhad is reportedly set to see its business prospects improve beginning from the fourth quarter although its various subsidiaries could face a much longer road to complete recovery.
According to a report from Inside Asian Gaming, this is the opinion of international brokerage Nomura Securities Company Limited and was contained within an investigation into how the Malaysian economy has been coping with the recent coronavirus crisis. The source detailed that this examination also revealed that all of the casino firm’s major venues have now at least partially re-opened following the earlier imposition of temporary pandemic-related closures.
The brokerage reportedly explained that Genting Malaysian Berhad’s fourth-quarter revival is due to be substantially aided by the performance of its flagship Resorts World Genting development where daily visitation has already reached 40,000 and led to average hotel occupancy rates of about 90%. It purportedly moreover stated that this impressive footfall will combine with New York’s re-opening Resorts World Catskills, which likewise has a low dependence on foreign business, to ‘result in a turnaround in earnings before interest, tax, depreciation and amortization from the fourth-quarter results season.’
Reportedly read the study from Nomura Securities Company Limited…
“We expect Resorts World Genting to stage a gradual recovery over the coming quarters with a sharp inflection coming in fiscal year 2022 with the opening of its theme park, which has an official timeline of mid-2021 but may be prone to slippages.”
However, the brokerage reportedly pronounced that Genting Malaysia Berhad subordinates such as Genting Singapore Limited, which is responsible for Singapore’s giant Resorts World Sentosa development, may be looking at a more difficult revival due to the fact that their business models rely heavily on foreign tourism, which has slipped to become ‘essentially negligible.’
The Nomura Securities Company Limited study reportedly read…
“A study of Google search trends in Malaysia shows that while airline search trends are still below pre-coronavirus levels, searches for terms relevant to local tourism within Malaysia such as ‘hotel bookings’ and ‘Genting’ are almost back to pre-coronavirus levels whereas search trends for coronavirus have declined to suggest a fading fear factor.”
[table id=1 /]