KUALA LUMPUR: Genting Malaysia Bhd has no immediate plans to reopen two of the three casino floors at its flagship integrated resort, Resorts World Genting (RWG), according to analysts.
During a recent earnings briefing, the gaming group said it would only consider reopening Genting Casino 1 (Circus Palace) and Genting Casino 2 (Hollywood) if demand justifies it.
The casinos were closed on Feb 28 this year, with the company citing plans for upgrade works as a precursor to reopening although no concrete timelines were provided.
The decision marks a significant shift for RWG, one of Malaysia's premier tourist destinations, where the Circus Palace and Hollywood gaming zones have long been integral attractions.
In the interim, patrons are being directed to the modern SkyCasino, reflecting changing consumer preferences in the post-Covid-19 landscape.
Sources told Inside Asian Gaming that only minimal renovations appear to have been carried out on the closed casino floors so far.
Business Times has reached out to Genting Malaysia for comment.
Meanwhile, in a research note following the release of Genting Malaysia's third-quarter 2024 (Q3 2024) results, Maybank Investment Bank Bhd's Samuel Yin Shao Yang expressed surprise at the lack of a clear reopening plan.
"We had expected both gaming floors to reopen around now to capitalise on the year-end holidays," he wrote.
As a result, Maybank IB has reduced its long-term earnings estimates for Genting Malaysia, slashing FY2024 net profit forecasts by 5.0 per cent to RM1.35 billion, FY2025 estimates by 21 per cent to RM1.67 billion, and FY2026 estimates by 20 per cent to RM1.88 billion.
RWG's mass market gross gaming revenue (GGR) has also been downgraded by 25 per cent on a full-year basis to account for the continued closure of the gaming floors.
Genting Malaysia's Q3 2024 results showed flat year-on-year GGR in Malaysia, with a 13 per cent decline in adjusted Ebitda to RM493.4 million due to higher payroll and operating costs.
Yin noted that Q4 Ebitda might improve slightly, driven by year-end holiday demand.
Group-wide revenue climbed 1.0 per cent year-on-year to RM2.75 billion, of which RWG contributed RM1.68 billion.
The group is cautiously optimistic about the near-term prospects of the leisure and hospitality industry and remains positive in the longer term.