The theme park in Genting Malaysia's SkyWorlds is generating a lot of buzz

[ASEAN NOW Content Team]

 

With little information on the SkyWorlds outdoor theme park's launch, TA Securities Research believes Genting Malaysia Bhd is carefully scheduling its opening as it considers the danger of Malaysia reverting to lockdown.

"Management released very little information about its SkyWorlds theme park, including the grand opening date.
The group has welcomed guests and staff to preview the park, according to management, assuring analysts that there have been no technical concerns "Following a conference call, the research firm released a report.

Furthermore, the entertainment company may hold off on opening the facility until approved transit lanes are established in major markets such as Singapore and Indonesia.

 

The much-anticipated theme park's relaunch comes as Genting Malaysia begins its earnings recovery in Q4 after suffering core losses of RM1 billion in 9MFY21 as a result of the casino's closure from June 1 to September 29.

The losses would have been higher if the group's US and UK divisions had performed better, but losses from associates fell year over year due to a lower share of losses from Empire as limitations in the US were removed.

The losses were in line with analysts' projections, accounting for 94.5 percent of TA Securities' full-year forecast and 85.8% of consensus.

 

"We expect a large loss reduction in 4Q21 as a result of the restart of casino activities on September 30 and the lifting of the interstate travel prohibition in mid-October," TA Securities stated.

Meanwhile, Genting Malaysia's 49 percent-owned subsidiary Genting Empire Records has been granted a licence in New York to handle mobile sports betting.

However, given the extremely competitive industry and the fact that eight other competitors have also acquired the licence, Genting Malaysia's management has stated that it is premature to discuss future profitability.

 

Genting Malaysia's capital investment in the firm, according to TA Securities, is negligible.