• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Tuesday 24 May 2022
  • 中文中文
  • 日本語日本語
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • Vietnam
  • Events
  • Consulting
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • Vietnam
  • Events
  • Consulting
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Genting Berhad outlook strong on Asia reopening, Las Vegas ramp: Fitch

Ben Blaschke by Ben Blaschke
Mon 18 Oct 2021 at 05:22
Viva Las Vegas
32
SHARES
788
VIEWS
Print Friendly, PDF & Email

Rising vaccination rates in key markets, a strong rebound in the Unites States and reduced capital expenditure will drive strong recovery for Genting Berhad over the next two years, helping the company deleverage to below 3x by end-2023 according to Fitch Ratings.

While risks still remain around future border closures due to the COVID-19 pandemic, Fitch analysts said in a Friday note that confidence is high around Genting’s prospects following the recent lifting of restrictions in Malaysia and Singapore.

The reopening of Resorts World Genting last week after a four-month closure is expected to see business volumes pick up rapidly, mirroring a previous reopening in August and September 2020 that saw GGR reach 80% of pre-COVID levels and hotel occupancy around 90%.

“We assume that a limit on 50% of the resort’s capacity will remain in place at least until 1Q22, but we expect a gradual relaxation of restrictions once COVID-19 is deemed endemic,” Fitch said. “This expectation is in line with decisions made by other countries, such as the US and UK, to remove capacity limits.

“Fitch expects GENM’s EBITDA margin to recover to pre-pandemic levels in 2022, although visitor volumes may not recover fully until 2023-2024.”

In the United States, Fitch said operations will normalize in the coming months after enjoying strong pent-up demand, with Genting’s recently opened US flagship, Resorts World Las Vegas (RWLV), to slowly build to fully-ramped EBITDA of US$350 million by the end of 2024.

“Nonetheless, RWLV will become increasingly important for Genting as its EBITDA grows, as the resort is the group’s flagship asset in the US,” the analysts said. “Fitch expects RWLV to contribute the same EBITDA as Genting Malaysia on a proportionate basis (factoring in Genting’s 49% share in Genting Malaysia) once it is fully ramped-up in 2024. RWLV’s growing contribution will also help Genting’s EBITDA to recover to pre- pandemic levels and deleverage to below 3x by end-2023.”

Recovery in Singapore, home to Genting Singapore’s Resorts World Sentosa, will be somewhat slower, with revenue rising from 43% of 2019 levels this year to around 50% in 2022 but fully recovering by 2023.

Fitch has maintained a “BBB” rating for Genting Berhad, stating, “Our expectations for deleveraging are supported by gradual recovery in Malaysia and Singapore, swift recovery in Genting’s US markets, combined with lower capex from 2022. All of Genting’s key operating markets have high vaccination rates, which suggests a return to strict lockdowns is unlikely and therefore supports our recovery estimates for the issuer.

“Fitch believes the next six to nine months are critical and should provide better visibility on the sector’s recovery. During this period, we expect governments to provide clearer indications of their border and travel policies, which are key to determine if casinos and tourism can gradually return to normal, or if visitor volumes are unlikely to return to pre-pandemic levels.

“The transition towards living with Covid-19 in Singapore and Malaysia and handling of movement controls or border closures are key risks to our recovery expectations. Prolonged curbs will mean structural challenges for operators to achieve pre-pandemic visitor levels.”

RelatedPosts

Improved Okada Manila performance not enough to push Japan’s Universal Entertainment Corp back to profit in 2021

Okada Manila to fully recover to pre-pandemic levels by 2023: Fitch

Fri 20 May 2022 at 04:57
Genting Hong Kong lays off 60 staff in Singapore

Lim Kok Thay’s new cruise line to launch first sailing from Singapore using former Dream Cruises vessel

Wed 18 May 2022 at 20:18
Steve Wynn said to be in US Department of Justice crosshairs over lobbying for China

US Department of Justice sues Steve Wynn over allegations he acted as an agent of China

Wed 18 May 2022 at 07:35
Slots 2.0

Light & Wonder targeting US$1.4 billion in Adjusted EBITDA by 2025

Wed 18 May 2022 at 04:50
Load More
Tags: Fitch RatingsGenting BerhadMalaysiaNorth AmericaResorts World GentingResorts World Las VegasSingapore
Share13Share2
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Oz Casinos: What now?

Editorial: Does the foreigner-only casino model work?

by Ben Blaschke
Thu 28 Apr 2022 at 15:28

The COVID-19 pandemic, along with the international border closures it forced, is one of a number of recent headwinds to...

Oz Casinos: What now?

Oz Casinos: What now?

by Ben Blaschke
Thu 28 Apr 2022 at 15:14

With three inquiries into Crown Resorts completed, a review into Star Entertainment Group underway and a litany of damning findings...

Off Track: AUSTRAC’s AML Failures

Off Track: AUSTRAC’s AML Failures

by Ben Blaschke
Thu 28 Apr 2022 at 13:16

Australia’s anti-money laundering watchdog has launched civil proceedings against Crown Resorts in what appears to be a reaction to its...

Locals Game

Locals Game

by Ben Blaschke
Thu 28 Apr 2022 at 13:05

IAG recently spoke with Shaun McCamley, former President at integrated resort The Grand Ho Tram Strip on Vietnam’s south-east coast,...

Related Posts

Class action launched against Star Entertainment Group

Star Entertainment Group names interim Chairman and CEO following latest boardroom casualty

by Ben Blaschke
Mon 23 May 2022 at 11:27

Australia’s Star Entertainment Group has named director Ben Heap as interim Chairman and Group Executive – Operations Geoff Hogg as interim CEO after Executive Chairman John O’Neill announced last week that he was stepping down. Both will take on their...

New problem gambling self-help app launched in Victoria

New problem gambling self-help app launched in Victoria

by Newsdesk
Mon 23 May 2022 at 11:21

The Victorian Responsible Gambling Foundation has unveiled a new app aimed at providing those experiencing gambling harm access to self-help. According to information released Monday, the “Reset” app – funded by a AU$200,000 (US$142,000) grant from the Victorian state government...

69 year-old food supplier in apparent suicide at Venetian Hotel resort loading dock

69 year-old food supplier in apparent suicide at Venetian Hotel resort loading dock

by Pierce Chan
Mon 23 May 2022 at 11:11

On Saturday afternoon (May 21), a suspected suicide was discovered in Macau's Cotai district. A 69-year-old man surnamed Lam was found hanged in the Venetian Hotel near the loading dock. Police have advised that the man was the owner of...

2021: Japan IR – Crunch time

Japan Casino Regulatory Commission taking public comments on licensing criteria

by Shintaro Kamimura
Mon 23 May 2022 at 05:48

The Japan Casino Regulatory Commission opened public comments on 19 May regarding screening standards for proceedings such as casino licensing based on the 2016 Act on Promotion of Development of Specified Complex Tourist Facilities Areas. Current screening criteria for casino...


Simple Play

IAG

© 2005-2022
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • Contributors
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Consulting
  • Magazines
  • Advertise
  • Contact
  • About

© 2005-2022
Inside Asian Gaming.
All rights reserved.