• 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
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

U.K.’s Brum likely profitable for GEN Malaysia: Nomura

Jun 08, 2015 Newsdesk Latest News, Top of the deck, World  


U.K.’s Brum likely profitable for GEN Malaysia: Nomura

A casino resort in Birmingham – the U.K.’s second-ranked city by population and nicknamed locally as ‘Brum’ – is likely to be a good source of earnings from mass-market gaming for Genting Malaysia Bhd, says a research note from Japanese brokerage Nomura.

“Resorts World Birmingham [pictured in a rendering], which is scheduled to open in the second half of 2015, should lead to future earnings uplift from Genting Malaysia’s U.K. operations,” said Nomura analysts Tushar Mohata and Alpa Aggarwal in the note issued on Friday.

It followed meetings between Genting Malaysia management and investors hosted by the brokerage during its Nomura Investment Forum Asia 2015.

Nomura added, referring to Genting’s countrywide U.K. operations: “Volume in the four international market casinos, which cater to VIPs, might see some slowdown, in line with the global decline in Chinese VIP roll.”

According to a corporate website, Genting U.K. has five casinos in London, including its flagship Crockfords, a private members club in upmarket Mayfair.

But provincial Birmingham – along with Durban in South Africa – is said by casino industry professionals to be one of the world’s biggest single-conurbation markets for roulette.

According to Birmingham City Council, citing the U.K.’s 2011 national census, around a quarter of Birmingham’s 1.07 million recorded population identified themselves as Asian or British Asian, including people with family roots on the Indian sub-continent and China.

Genting U.K. has operated a casino in the city since 2003. Its new GBP150-million (US$229.2-million) property Resorts World Birmingham covers 12 storeys and includes a 50-outlet shopping mall and an 11-screen cinema.

“The resort location is in close proximity to the airport and train station and is planned to have a casino of up to 30 gaming tables, 150 slot machines, sports betting and bingo along with non-gaming amenities including a hotel and spa with 180 four-star rooms and five VIP-star suites,” said Nomura’s note.

Genting U.K. operates more than 40 casino outlets in the U.K., ranging from Edinburgh in Scotland to Plymouth on the southwest coast of England.

In commentary on Genting Malaysia’s other operations, Nomura said the casino operator’s core gaming business – the Resorts World Genting casino resort at Genting Highlands in Malaysia – had not been as heavily exposed to the mainland China VIP gaming business as Macau and some other destinations.

“In first quarter 2015, VIP roll was up in low single digits year-on-year, highlighting the resilience of the ASEAN [southeast Asian] VIP business, which Resorts World Genting is mainly focused on. Additionally, 60 percent of the casino revenues are derived from the mass market, which is still holding up,” stated the Nomura team.

The institution added that at Resorts World New York City, in the U.S., “a reduction in headcount,” that raised severance costs in the fourth quarter had helped in the first quarter to boost earnings before interest, taxation, depreciation and amortisation by 45 percent year-on-year to MYR96.0 million (US$25.5 million).

Nomura stated that Genting Malaysia was looking to cut further the losses at its majority-owned Resorts World Bimini in the Bahamas.

“The 300-room Hilton hotel, to open in the second half 2015, should further improve the product and visitation to the resort. Management’s longer term goal is to capture a higher share of the VIP market due to the high profitability (only an approximately 5 percent gaming tax rate),” stated the Nomura analysts.


  • tweet
Related articles
  • GEN Malaysia stable outlook, rebound taking its time: Fitch
    GEN Malaysia stable outlook, rebound...

    Sep 21, 2023  

  • Positive momentum in U.S. for GEN Malaysia: Maybank
    Positive momentum in U.S. for GEN...

    Sep 11, 2023  

More news
  • G2E Asia 2024 set for Macau in June, no Singapore event
    G2E Asia 2024 set for Macau in June, no...

    Sep 26, 2023  

  • Sale of Pagcor casinos by 2025 feasible: DoF
    Sale of Pagcor casinos by 2025...

    Sep 26, 2023  


Latest News

G2E Asia 2024 set for Macau in June, no Singapore event

G2E Asia 2024 set for Macau in June, no Singapore event

Sep 26, 2023  

The 2024 edition of the Global Gaming Expo (G2E) Asia casino trade event is to be held in Macau, according to a Tuesday press release. There will not be a G2E Asia event in Singapore next year, the...
Read More
Sale of Pagcor casinos by 2025 feasible: DoF

Sale of Pagcor casinos by 2025 feasible: DoF

Sep 26, 2023  

SJM hosts seminar in Indonesia to promote Macau offerings

SJM hosts seminar in Indonesia to promote Macau offerings

Sep 26, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


50

Maximum aggregate number of licensed gaming promoters – also known as ‘junkets’ – that Macau's casino operators will be able to work with in 2024



Most Popular

  • Any Macau clamp on money changing may hurt GGR: punditsAny Macau clamp on money changing may hurt GGR: pundits September 25, 2023
  • Macau govt sets junket cap per casino operator for 2024Macau govt sets junket cap per casino operator for 2024 September 25, 2023
  • Wynn Macau Ltd cancels K-pop festival scheduled for OctWynn Macau Ltd cancels K-pop festival scheduled for Oct September 25, 2023
  • Strong Macau hotel bookings for autumn Golden WeekStrong Macau hotel bookings for autumn Golden Week September 22, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us