GEN Malaysia 2024 Falls Amid Bulk Revamp: Analysts

An investment bank expects Genting Malaysia Bhd's 2024 revenue to rise just 1.7% year-on-year, the operator of the country's only casino resort, Resort World Genting (file photo), as two large market gaming venues in the Genting Highlands complex were shut for at least nine months.

Maybank Investment Bank Bhd now expects Genting Malaysia's annual revenue of 10.36 billion yuan ($2.2 billion), just 10.19 billion yuan in 2023.

The casino company also has gaming businesses in the United States, the Bahamas, the United Kingdom and Egypt, but the majority of its revenue comes from Malaysian businesses.

Maybank analyst Samuel Insao Yang on Monday referred to closing two large market casino areas at Resort World Genting, located in the highlands outside the Malaysian capital Kuala Lumpur, from Feb. 28.

"Supposing Circus Palace and Hollywood Mass Gaming Floor reopen for nine months starting February 28, 2024 and 50% of Mass Market GGR [total gaming revenue] is transferred to Sky Casino [onsite facilities], we lower our Annual Resort World Genting Mass Market GGR forecast by 19%," he said

Maybank's Mr Yin added: "The above net impact is a 15% reduction in annual revenue for 2024. The bank has not changed its forecast for 2025 and 2026.

The analyst said after a March 14 site visit: "We were positively surprised at how crowded Sky Casino was given it was a weekday morning."

He added: "The clear explanation is that the gamblers who were sponsoring Circus Palace and Hollywood's large game venues sponsored Sky Casino."

Mr. Yin said Genting Malaysia did not provide guidance on when the large gaming space, which is currently being revamped, would reopen, but the bank thought it was "to raise capital at the end of the year."

Maybank observed that "VIP gaming venues" located in gaming areas such as the Circus Palace at Resort World Genting and the Hollywood mega-game venues were "still open."

The agency said it kept its 2025 and 2026 GGR forecasts for Resort World Genting at 104% and 106%, respectively, compared to 2019, or pre-pandemic levels.

"History has shown us that Resort World Genting GGR grows after the game layer is expanded or renovated," Yin added.

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