An investment bank expects sales of Genting Malaysia Bhd, the operator of Resort World Genting (file photo), Malaysia’s only casino resort, to rise just 1.7% year-on-year in 2024. This was due to the closure of two large market game venues in the Genting Highlands complex for at least nine months.
Maybank Investment Bank Bhd now expects Genting Malaysia’s full-year revenue to be 10.36 billion yuan ($2.2 billion), a mere 10.19 billion yuan in 2023.
The casino company also has gaming businesses in the U.S., the Bahamas, the U.K. and Egypt, but the majority of its revenue comes from its Malaysian operations.
Maybank analyst Samuel Yin Sao on Monday said two large market casino areas in Resorts World Genting, located on the highlands outside the Malaysian capital Kuala Lumpur, should be closed 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] will be relocated to Sky Casino [Field Facility], we lower our full-year Resort World Genting Mass Market GGR forecast by 19%.”
Maybank’s Mr Yin added: “The above net impact is to reduce full-year 2024 revenue by 15%. The bank did not change its 2025 and 2026 forecasts.
The analyst said after a site visit on March 14: “We were positively surprised by how crowded Sky Casino was given it was a weekday morning.”
He added: “The clear explanation is that gamblers who were sponsoring Circus Palace and Hollywood’s large gaming venues sponsored Sky Casino.”
Yin said Genting Malaysia did not provide guidance on when large gaming spaces, which are 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 zones such as Circus Palace and Hollywood’s large gaming venues at Resort World Genting are “still open.”
The agency said it maintained its 2025 and 2026 GGR projections for resort world gentings at 104% and 106%, respectively, compared to 2019, i.e., pre-pandemic levels.
“History has shown us that Resort World Genting GGR grows after the game layer is expanded or renovated,” added Yin.
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