Genting Malaysia expected to be hard hit by closure

Genting Malaysia, which has shut its gaming properties until April 1 under government orders as a Covid-19 countermeasure, is expected to be hard hit by these measures, according to analysts.

Affin Hwang Capital has offered the view that, “The decision by Genting Malaysia to close down most (if not all) its facilities in Genting Highlands would help to lower its overall operating cost during the shutdown period, but the loss of revenue is too significant, which we estimate to be around RM250 million for the 14 days.”

They added, “Given that construction works are also put on hold, we do not discount the possibility that the new outdoor theme park, which was scheduled to open by the third quarter of 2020, could face further delays.”

The researchers also noted that if social distancing policies are instituted in the casinos after the reopening, there could be further downside risk to Genting Malaysia’s earnings.

On the other hand, they asserted, “the temporary closures of Resorts World Casino New York and Resorts World Catskill are not expected to have a material financial impact to the group as a whole given that its US operations contribute less than 15 percent to the group’s overall earnings.”

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