The recent performance of the three casino resorts run by Genting Malaysia Berhad in the United States reportedly bodes well for the firm as it prepares to re-open its gambling-friendly facilities in Malaysia and Singapore.
According to a report from Inside Asian Gaming, this is the opinion of Nomura Securities Company Limited with the international brokerage having maintained a ‘neutral’ rating on the operator alongside a ‘buy’ assessment for its international business. The source detailed that the Kuala Luper-listed company runs a trio of American casino resorts encompassing the Resorts World Catskills, Resorts World New York City and recently-opened Resorts World Las Vegas venues while moreover being responsible for the Resorts World Genting property in northern Malaysia as well as Singapore’s giant Resorts World Sentosa development.
Solid solicitation:
Alpa Aggarwal and Tushar Mohata from Nomura Securities Company Limited reportedly used an official filing to explain that third-quarter gross gaming revenues at the slots-only Resorts World New York City enterprise were flat on a quarter-on-quarter basis but 4% higher when compared with the same three-month period in 2019. They purportedly declared that this indicates ‘stable demand’ despite September representing ‘the peak’ of the current coronavirus wave in the state of New York.
Rapid resurgence:
Regarding the Resorts World Catskills venue and the pair reportedly disclosed that gross gaming revenues for the three months to the end of September rose by 28% quarter-on-quarter to $64.5 million, which equated to a 5% boost on the same pre-pandemic period in 2019. The analysts purportedly noted that Genting Malaysia Berhad owns a 49% stake in the upstate New York facility with the recent performance of the enterprise being indicative of strong pent-up demand.
Statewide surge:
Likewise, Aggarwal and Mohata reportedly divulged that Resorts World Las Vegas, which opened in June complete with a trio of hotels, likely benefitted from pent-up demand as third-quarter gross gaming revenues for Nevada as a whole swelled by 6% quarter-on-quarter to $3.68 billion. The Nomura Securities Company Limited duo purportedly furthermore observed that this figure was a boost of 59% year-on-year and 21% when compared with 2019 with the tally for the Las Vegas Strip alone going up by 18% quarter-on-quarter and 106% year-on-year to $2.06 billion.
Reportedly read a statement from Aggarwal and Mohata…
“We believe the United States operations will likely remain a resilient contributor to Genting Malaysia Berhad’s earnings given the higher vaccination coverage in the United States and a lower appetite for strict lockdowns. We think the next catalyst for the group will be the start of inbound international tourism in its home markets.”