Genting to team with Japanese partners
Genting Singapore Plc has organised a dedicated project team to prepare a proposal if Japan’s parliament approves a draft law to legalise casinos. The company says it might partner with a Japanese company.
“Genting Singapore will partner Japanese institutions that will add to the strength of its proposal for an integrated resort in Japan,” Malaysia’s Genting Bhd, the parent company, said in a regulatory filing in Malaysia.
“Such a proposal will also require very significant financial resources that Genting Singapore group is in a well-placed position to execute,” it added.
Genting Singapore, the developer and owner of the Resorts World Sentosa casino resort in Singapore, announced this week it had set up eight wholly owned subsidiaries in Japan.
The Japanese units – each with a nominal registered capital of JPY2.00 (2 US cents) – include Resorts World Japan Co Ltd, Resorts World Tokyo Co Ltd and Resorts World Osaka Co Ltd, and “will be principally engaged in investment holding, leisure and related businesses”.
The company said it would keep a close eye on developments in Japan, “to understand, monitor and prepare for developments in the near future”.
It is unlikely that the enabling bill for casinos could actually be passed in the current session of the Japanese Diet, which ends on June 22.
Genting Bhd said on Thursday that the first-quarter net profit of the industrial conglomerate surged 25 percent to 497.5 million ringgit (US$154.8 million) compared with 397.8 million ringgit a year earlier. Revenue rose 20 percent to 4.69 billion ringgit from 3.91 billion ringgit during the same quarter last year, due to higher volumes in its gaming business, the company said.
Genting Bhd has interests in property development and plantations and operates Asia’s largest listed cruise operator, Genting Hong Kong Ltd.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) for the Genting Singapore unit rose as a result of lower costs for its premium players business, which was slightly offset by higher staff costs said the parent.
“Resorts World Sentosa achieved significant year-on-year growth on the back of higher rolling volume,” Genting Berhad said. “Looking ahead however, RWS will closely monitor the economic developments in the region as the environment appears to be more challenging.”
Genting Singapore in March said it had “completed the transaction to invest in South Korea’s Jeju Island”. The company is partnering Landing International Development Ltd to develop a US$2.2 billion casino resort targeting Chinese gamblers.
“Genting Singapore is in the process of finalising the development plans and obtaining the relevant approvals from the local authorities,” the parent company said.
In the United Kingdom, Genting Bhd said it would continue to expand the premium-player business in its London casinos and expects its Resorts World Birmingham project to open in the spring of 2015.
Genting Bhd this month got preliminary approval to build a US$4 billion casino-resort in Las Vegas and is also bidding for a new casino licence in upstate New York.
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