Maybank Investment Bank believes that Genting Malaysia’s Resorts World Genting could breakeven by the fourth quarter of the year having reopened last week, and that re-COVID-19 levels will return next year.
The casino hasn’t broken even ifor the duration of the pandemic.
Maybank Investment Bank analyst Samuel Yin Shao Yang said: “We are optimistic that this will drive Genting Malaysia to breakeven in 4Q21 after what is likely six consecutive quarters of core net losses. Catalysed by the opening of Genting SkyWorld in 4Q21, we expect RWG visitor arrivals to further recover to pre-COVID-19 levels from FY22E onwards.”
He believes Genting Malaysia will post a loss in the third quarter similar to that posted in the second quarter of around US$84.5m.
He added: “We maintain our view that SkyWorld will open in December 2021 to coincide with the school holidays. Going forward, we are confident that it will attract both gaming and non-gaming visitors to Resorts World Genting. Our FY22E/FY23E core net profits (US$249m in 2022 and US$305m in 2023) are based on Resorts World Genting visitor arrivals of 24.2m and 26.2m. In short, we expect some sort of normalcy resembling pre-COVID-19 levels to return in FY22.”