Maybank Investment Bank Bhd said in a Friday memo it was cutting “by 25 percent” its full-year 2025 forecast for mass-market gross gaming revenue (GGR) at Resorts World Genting (RWG), Malaysia’s only casino complex (pictured).
This was to “account for the continued closure of the Circus Palace and Hollywood mass gaming floors,” a shuttering that had been announced at the end of February.
“What surprised us more was that Genting Malaysia has yet to disclose concrete plans to reopen the Circus Palace and Hollywood mass gaming floors which were closed in February 2024,” amid management “citing uncertain demand,” said Maybank analyst Samuel Yin Shao Yang, giving commentary after the third-quarter results of the property’s promoter, Genting Malaysia Bhd.
Mr Yin added: “We had expected both gaming floors to reopen around now to capitalise on the year-end holidays.”
The latter firm also has gaming venues in the Bahamas, the United Kingdom, and Egypt, as well as the flagship Malaysia property in in Genting Highlands outside Malaysia’s capital, Kuala Lumpur.
A total of 63.0 percent of overall revenue for Genting Malaysia in the first nine months this year – or MYR5.05 billion (US$1.14 billion) – was from “leisure and hospitality” operations the group’s Resorts World Genting property.
In terms of the casino firm’s overall 2024 revenue, Maybank is currently forecasting nearly MYR10.81 billion, which would be up 6.1 percent on 2023’s nearly MYR10.19 billion.
Mr Yin said regarding the Malaysia operation, and referring to its third-quarter margin on earnings before interest, taxation, depreciation and amortisation (EBITDA): “The lower third-quarter Resorts World Genting EBITDA margin was due to higher staff cost and VIP operating expenses.”
The institution now expects Resorts World Genting to achieve lower EBITDA margins of 31 percent this year and in 2025, from a previous forecast of 33 percent. Maybank now estimates core net profit in full-year 2024 to reach MYR687.3 million, compared with a previous forecast of MYR725.4 million.
