Better results likely in 4Q21 for gaming, casinos

November 16, 2021 Earnings & Filings Industry Updates

THE gaming companies and casino segment is setting the course for steep earnings recovery in the fourth quarter of 2021 (4Q21), having Resorts World Genting (RWG) reopened on September 30 followed by the lifting of interstate border restrictions.

UOB Kay Hian Malaysia head of research Vincent Khoo said the tourism sector will continue to be the main beneficiary to the upcoming economy reopening as the pandemic eases, he expects more border relaxation and travel corridors to be initiated between Malaysia and the neighbouring ASEAN countries.

“In Malaysia, the tremendous pent-up demand from local patronage, which accounts for more than 70% of RWG’s visitorships, as well as the long-awaited opening of Genting Skyworlds outdoor theme park in November are also expected to stoke swift earnings recovery.

“Overall, the gaming companies and casino segment is on a sweet spot to capitalise on this post-pandemic leisure boom,” he told The Malaysian Reserve (TMR).

Genting Malaysia Bhd has narrowed its net loss to RM348.11 million in the second quarter ended June 30, 2021 from a net loss of RM900.42 million registered in the same quarter a year ago.

For the six-month period, the group’s net loss narrowed to RM831.7 million from RM1.32 billion, while revenue decreased 30.4 per cent to RM1.44 billion from RM2.07 billion.