Genting Malaysia has delayed the opening of its 20th Century Fox theme park until 2017, a development that analysts say is negative for the company as the attraction was expected to be a key driver of visitation.
As VIP revenue from China’s high rollers continues to slump, Malaysia’s Genting Group is seeking to carve a niche for itself by targeting the more profitable premium mass segment across its Asian properties.
Genting Malaysia is buying the group’s U.K. online gambling business for GBP7.2 million ($10.9 million) as part of an ongoing effort to streamline the group structure.
In a filing with Bursa Malaysia, Genting Malaysia, which is 49.3 percent-owned by Genting BhD, said it was buying Genting Alderney from RWI International Investments, which is 50 percent owned by Genting Bhd and 50 percent by its chairman Tan Sri Lim Kok Thay.
Maybank Kim Eng said Genting Malaysia’s 15Q2 results missed estimates slightly due to bad debts at GENUK, however, Resorts World Genting operations stay strong.
GENM’s 15Q2 core net profit of MYR247.6 million ($57.2 million), down 4 percent year-on-year, brought the first six months’ core net profit to MYR597.4 million, also down 4 percent YoY, which missed by a tad at 43 percent of Maybank’s full year estimate.
Morgan Stanley Research said in a note that consensus expectations of Genting Malaysia’s growth locally remain too high, and the company’s overseas earnings remain affected by losses in Resorts World Bimini.