• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Resorts World Genting rev to rise 8pct in 2019: Nomura

Jan 29, 2019 Newsdesk Latest News, Rest of Asia, Top of the deck  


Resorts World Genting rev to rise 8pct in 2019: Nomura

Japanese brokerage Nomura says “healthy” visitor ramp-up and core revenue growth at Resorts World Genting – Malaysia’s only legal casino operation – should “remain resilient” in full calendar year 2019. The brokerage stated in a Monday note it expected the property’s operator, Genting Malaysia Bhd, to post revenue growth of 8 percent for this year.

“We expect Genting Malaysia’s next leg of growth to come from its capex in Malaysia, which is a growing cash cow for the company and has boosted visitation and revenues,” wrote analysts Tushar Mohata and Alpa Aggarwal.

They added: “The recent punitive gaming tax hike, and theme park dispute is likely to dampen EBITDA [earnings before interest, taxation, depreciation and amortisation] growth, but we believe the share price has already more than factored in the negatives.”

In November the Malaysian government budget plan said the casino licence fee paid by Genting Malaysia for its Resorts World Genting facility was being be increased from MYR120 million (US$29.2 million) to MYR150 million per year, while the casino duty rate was to be raised to 35 percent from 25 percent of gross gaming revenue. The authorities also said gaming machine duties were being increased from 20 percent to 30 percent on gross collection.

Resorts World Genting (pictured in a file photo) was expected to open this year a Fox-branded, Hollywood-focused, theme park, but the facility is now the centre of a legal battle in the United States courts. The park was to be a central part of the revamp of Resorts World Genting, launched in December 2013.

Nomura noted in its Monday memo: “[The] theme park might take a few quarters to be operational: given that the theme park is now stuck in a legal dispute with Fox, we believe it might be a few quarters (possibly 2020) till a remodelled theme park gets operational.” The institution added:  “The erstwhile design was built on Fox intellectual property, and we believe that given the final stages of completion, it might not be easy to scrub the IP quickly and get the park operational on a generic or other-brand IP (should management choose to do this while the legal dispute is ongoing).”

Last week it emerged that Genting Malaysia had applied for a judicial review against another Malaysian government decision it considers harms its interests. It concerns what the casino business said was a delay to some promised tax incentives for its multi-billion-dollar revamp plan for the complex.

There were positive factors that could help drive results at Resorts World Genting, the Nomura analysts said in their Monday note. “The indoor theme park (Skytropolis Funland) has officially started operations with 13 out of 21 planned rides, and we believe this should boost visitation,” they stated.

The analysts added that, after a recent “steep share price correction” in the stock of Genting Malasia – representing a price drop of more than 20 percent in the last three months –, management was “likely to focus more on the Malaysia resort ramp-up and is unlikely to invest significant further capex in low-return-on-invested-capital overseas projects, which should be better for minority shareholder interests.”

Nomura now expects Genting Malaysia to deliver net profit of MYR1.27 billion in 2019, reverting an expected loss of approximately MYR450 million for full calendar year 2018. EBITDA for this year should however go down 9 percent in year-on-year terms.


  • tweet
Related articles
  • Malaysia Covid outlook negative to Genting Bhd: Moody’s
    Malaysia Covid outlook negative to...

    Jan 15, 2021  

  • RWG cuts capacity, offerings amid Malaysia partial lockdown
    RWG cuts capacity, offerings amid...

    Jan 13, 2021  

More news
  • Casino op MGM China to pay most staff discretionary bonus
    Casino op MGM China to pay most staff...

    Jan 18, 2021  

  • Casino op Silver Heritage to issue 53mln new shares
    Casino op Silver Heritage to issue...

    Jan 18, 2021  


Latest News

Casino op MGM China to pay most staff discretionary bonus

Casino op MGM China to pay most staff discretionary bonus

Jan 18, 2021  

Macau casino operator MGM China Holdings Ltd announced on Monday that it was to pay a “discretionary bonus” to “eligible non-management” staff, adding that “over 90 percent” of its...
Read More
Casino op Silver Heritage to issue 53mln new shares

Casino op Silver Heritage to issue 53mln new shares

Jan 18, 2021  

Grand Korea extends Seoul, Busan casino closures to Feb 1

Grand Korea extends Seoul, Busan casino closures to Feb 1

Jan 18, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"The most worrying [thing] is whether [mainland] China will again tighten the issuance of travel visas [for visits to Macau]"

Luiz Lam Kai Kuong

Macau junket investor



Most Popular

  • Sheldon Adelson, self-declared casino industry iconoclastSheldon Adelson, self-declared casino industry iconoclast January 13, 2021
  • CNY 2021 unlikely to boost Macau casinos, say observersCNY 2021 unlikely to boost Macau casinos, say observers January 15, 2021
  • Quality fake chips sold online found at Macau casinoQuality fake chips sold online found at Macau casino January 13, 2021
  • Casino entrepreneur Sheldon Adelson dies aged 87Casino entrepreneur Sheldon Adelson dies aged 87 January 12, 2021
  • Police find US$11m of missed Landing cash, suspects soughtPolice find US$11m of missed Landing cash, suspects sought January 14, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us