The rise of Resorts World Las Vegas slower than expected: Nomura

Malaysia’s Genting Berhad said its recently launched US$4.3 billion integrated resort in Las Vegas, Resorts World Las Vegas (RWLV), had “cash flow positive” in 4Q21, but analysts described its ramp-up as slower than expected.

According to details outlined by Nomura’s Tushar Mohata and Alpa Aggarwal in an overnight note, RWLV recorded revenues of approximately MYR 716 million (USD 170 million) and EBITDA of MYR 96 million (USD 23 million) during the of the December quarter, broadly in line with 3Q21 revenue and EBITDA of MYR 723 million ($175 million) and MYR 110 million ($27 million) respectively.

While Genting Bhd said the property “continues to grow its business base and databases,” analysts weren’t so positive.

“Given consensus expectations of a continued ramp-up of RWLV, this performance could come as a negative surprise, they wrote.

For its first six months of operation, RWLV reported revenue of US$346 million and EBITDA of US$50 million against Nomura’s projections of US$245 million in revenue and US$57 million in ‘EBITDA.

“Management mentioned that the company suffered slightly from the imposition of the face mask mandate in indoor public places by the State of Nevada starting July 30, 2021, some convention cancellations and soft business. weekdays,” analysts said following Genting’s 4Q21 earnings call. “The mask mandate has now been removed from February 10, 2022.”

Genting Bhd’s group-wide results for the December quarter saw revenue increase 59% year-on-year to MYR 4.84 billion (USD 1.15 billion), while adjusted EBITDA increased by 37% to reach MYR 1.61 billion (USD 383 million). The group posted a 4Q21 profit of MYR 46.8 million (USD 11 million).

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