• 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

Theme park delay clips GEN Malaysia estimates: analyst

Aug 28, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck  


Theme park delay clips GEN Malaysia estimates: analyst

Group earnings forecasts for multi-jurisidiction casino operator Genting Malaysia Bhd are being reduced for the years 2018 and 2019 by Affin Hwang Investment Bank Bhd, on news that a theme park at the flagship Resorts World Genting property will not now open until the second half of 2018.

The institution nonetheless estimates that annual group revenue could rise to nearly MYR10.87 billion (US$2.55 billion) by 2018, partly on the strength of 20th Century Fox World Malaysia, a Hollywood-themed family facility. In 2016, the group’s revenue was MYR8.93 billion.

“New facilities have the ability to drive higher visitation growth. This is well reflected post the opening of the Genting Premium Outlet in second quarter 2017, whereby visitation growth [that quarter] is up 8 percent year-on-year, relative to the 3 percent decline in first quarter 2017,” said a Friday note from Affin Hwang analyst Ng Chi Hoong, referring to a shopping facility at Resorts World Genting. The latter is Malaysia’s only licensed casino resort, located at Genting Highlands, outside the capital Kuala Lumpur.

“Management is now guiding that the theme park opening has moved to second half 2018, which is a slight delay from its previous guidance of second quarter 2018. As such, we have also lowered our earnings-growth expectation for 2018-19,” said Affin Hwang in the report, which has been distributed by brokerage Daiwa Securities Group Inc.

Japanese brokerage Nomura said in a Friday note – referring to new facilities at the core property at Genting Highlands: “The question is whether all the capacity opened so far, namely the mass gaming area, shopping, dining and cable car, has started to boost earnings yet.”

Nomura’s analysts Tushar Mohata and Alpa Aggarwal added: “So far, all metrics seem to suggest that top-line inflection has begun, with Malaysia revenue up 7 percent quarter-on-quarter.”

The brokerage also stated: “More growth is expected as approximately 500 hotel rooms are added by year-end along with opening of new VIP gaming area by September. However, overall start-up costs (utilities/payroll) are clearly still eroding profitability, with Malaysia adjusted EBITDA [earnings before interest, taxation, depreciation and amortisation] margins at approximately 30 percent (down 5 percentage points year-on-year), and investors should expect this to hurt overall full fiscal year numbers.”

Net profit at Genting Malaysia fell by nearly 60 percent year-on-year in the second quarter of 2017.

The 20th Century Fox World Malaysia project is part of a major revamp for Resorts World Genting, with resort management having embarked on a 10-year, MYR10-billion master plan called the Genting Integrated Tourism Plan, or “GITP”.

Genting Malaysia also runs Resorts World Casino New York City, in the United States, Resorts World Bimini, in the Bahamas, and venues in the United Kingdom including Resorts World Birmingham.


  • tweet
Related articles
  • GEN Malaysia unit taps US$1bln in notes
    GEN Malaysia unit taps US$1bln in

    Apr 14, 2021  

  • GEN Malaysia may deleverage within 2 years says Fitch
    GEN Malaysia may deleverage within 2...

    Apr 07, 2021  

More news
  • April pax tally to rise 26pct m-o-m says Macau airport op
    April pax tally to rise 26pct m-o-m...

    Apr 19, 2021  

  • Two-day Japan IR Forum online event begins on Weds
    Two-day Japan IR Forum online event...

    Apr 19, 2021  


Latest News

April pax tally to rise 26pct m-o-m says Macau airport op

April pax tally to rise 26pct m-o-m says Macau airport op

Apr 19, 2021  

Macau’s airport expects a circa 26-percent-higher volume of passenger movements in April compared to March, according to information it provided to GGRAsia. Macau International Airport Co Ltd,...
Read More
Two-day Japan IR Forum online event begins on Weds

Two-day Japan IR Forum online event begins on Weds

Apr 19, 2021  

Talks on NagaWorld lay-offs amid pandemic: source

Talks on NagaWorld lay-offs amid pandemic: source

Apr 19, 2021  

Oaktree offers US$$2.3bln for Crown to buy out Packer

Oaktree offers US$$2.3bln for Crown to buy out Packer

Apr 19, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$1.14 billion

Macau’s total VIP gross gaming revenue in the first quarter of 2021



Most Popular

  • Macau 2021 GGR could be half of pre- Covid-19 levels: FitchMacau 2021 GGR could be half of pre- Covid-19 levels: Fitch April 15, 2021
  • NUSTAR complex in Cebu slated to open 2022: UHRINUSTAR complex in Cebu slated to open 2022: UHRI April 16, 2021
  • Macau VIP GGR up 20pct sequentially in 1Q: govtMacau VIP GGR up 20pct sequentially in 1Q: govt April 16, 2021
  • Macau may tie GBA backing to gaming tender: law expertsMacau may tie GBA backing to gaming tender: law experts April 16, 2021
  • Bloomberry Quezon project in 2023, focus on preserving cashBloomberry Quezon project in 2023, focus on preserving cash April 16, 2021
Copyright 2014-2021 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us