Maybank anticipates 1.7% y-o-y increase Genting Malaysia revenue in 2024

According to an investment bank, Resorts World Genting, Malaysia’s only casino resort, would close its two mass-market gaming floors for at least nine months in 2024, which will cause Genting Malaysia Bhd’s revenue to increase by 1.7 percent year over year.

The full-year revenue of Genting Malaysia is anticipated to increase from little less than MYR10.19 billion in 2023 to MYR10.36 billion (US$2.20 billion) in 2024. Although Genting Malaysia has gaming businesses in Egypt, the Bahamas, the United States, and the United Kingdom, the majority of its revenue is generated inside Malaysia.

The closure of Resorts World Genting’s two mass-market casino segments since February 28 would undoubtedly have an impact on the company’s profitability, Maybank analyst Samuel Yin Shao Yang said in a letter on Monday.

Maybank has lowered its full-year projections for mass market gross gaming revenue at Resorts World Genting by 19%, which would mean a 15% drop in profitability in 2024, assuming these areas stay closed for nine months and half of their gross gaming income moves to the on-site SkyCasino. Maybank’s projections for 2025 and 2026, however, are still valid.

Mr. Yin saw that the SkyCasino was particularly crowded after visiting the location on March 14—even on a weekday morning—and surmised that customers who had previously visited the closed gambling floors were now making their way to the SkyCasino.

Genting Malaysia has not yet announced the date of the renovated gaming areas’ reopening, but Maybank anticipates it will happen before year’s end in order to take advantage of the holiday season. Maybank further said that the shuttered public gaming floors at Resorts World Genting are still home to the VIP gaming levels.

Resorts World Genting’s gross gaming revenue in 2025 and 2026 is expected by Maybank to reach 104% and 106%, respectively, of pre-pandemic levels in 2019. According to Mr. Yin, past data indicates that Resorts World Genting’s gross gaming revenue often rises after renovations or additions to the gaming floor.

Original story by: GGRAsia