Genting Malaysia has been principally involved in the leisure and hospitality business covering theme parks, gaming, hotels, seaside resorts and entertainment for over 50 years. Its Genting Rewards Card Loyalty Programme in Malaysia has to-date garnered a following of 3.7 million members. Resorts World Genting, a premier integrated family leisure and entertainment resort sited at the peak of Genting Highlands, welcomes approximately 20 million visitations annually and is a major tourist destination of choice in Malaysia.Resorts World Genting is equipped with 6 hotels, theme parks and entertainment attractions, dining and retail outlets, international shows and business convention facilities. The hotels at Resorts World Genting are Genting Grand, Maxims, Resort Hotel, Theme Park Hotel, Awana Hotel and First World Hotel – World’s Largest Hotel, as recognised by Guinness World Records. Genting Malaysia has also embarked on a 10-year master plan to reinvigorate and transform Resorts World Genting under the Genting Integrated Tourism Plan (“GITP”). This includes the development of the world’s first Twentieth Century Fox World theme park. Its first offering, the new First World Hotel Tower 3, was fully opened in June 2015. Other GITP attractions and facilities are expected to be opened in stages from the second half of 2016.Genting Malaysia also owns two beautiful seaside properties, namely Resorts World Kijal in Terengganu and Resorts World Langkawi in Langkawi. Collectively, our properties in Malaysia offer over 10,000 rooms.In the United States, Genting Malaysia operates Resorts World Casino New York City(“RWNYC”), the first and only video gaming machine facility in New York City, at the site of Aqueduct Racetrack. RWNYC is a leading entertainment hub providing approximately 5,500 electronic gaming machines. In addition to its gaming facilities, RWNYC is also renowned for its premier dining and entertainment offerings. RWNYC has achieved several milestones – its daily revenue per machine has consistently been above that of the statewide and industry averages. It has also established itself as the leading gaming operator in the Northeast US market despite intense regional competition. The Group owns a contiguous 30-acre prime freehold waterfront site overlooking Biscayne Bay in downtown Miami, Florida, United States. The site includes the Omni Center, which consists of retail space, office space and a 527-room Hilton Hotel. Acquired by Genting Malaysia in October 2010, Genting UK is one of the leading casino operators in the United Kingdom with 43 operating casinos. Genting UK operates 6 casinos in London, including four of the most prestigious brands in the capital city, namely Crockfords, the Colony Club, Maxims Casino Club and The Palm Beach. The remaining casinos are located in the UK provinces. These casinos offer memorable experiences with various slots and table games in addition to restaurants, bars and other entertainments. Resorts World Birmingham, the Group’s latest property, was opened in October 2015. As the first integrated leisure complex in the UK, Resorts World Birmingham, which comprises a Genting International casino, a 178-room four-star Genting Hotel, spa and conference facilities, a multi-screen cinema, food and beverage outlets and an outlet centre, will bring a myriad of unique and exciting leisure and entertainment offerings to its visitors. The Group also secured the naming rights of the second largest concert arena in the UK in early 2015 – the arena was renamed Genting Arena.Genting Malaysia has an equity investment of 16.9% Genting Hong Kong Ltd, which has core businesses in both land and sea-based businesses comprising Star Cruises, Dream Cruises, Crystal Cruises, German shipyard – Lloyd Werft Group, prominent nightlife brand – Zouk and Resorts World Manila.
An elaborate theme park at Genting Highlands that was most recently scheduled to have its soft opening in the third quarter of this year is now said to be facing an additional delay of another year. The decision to build the theme park has been public since 2014, but has faced numerous setbacks and delays, […]
Genting Malaysia will reportedly cut jobs and reduce wages after reporting a loss for Q1 due to the Covid-19 pandemic.
Genting Malaysia has recorded a net loss of almost RM418 million (about US$96 million) in the first quarter of 2020 compared with a net profit of more than RM268 million a year ago. The group’s revenue also declined by 29 percent to RM1.96 billion from RM2.74 billion. The company attributed its losses to the impact […]
Genting Malaysia said its properties will remain closed until May 12 after the government extended the country’s Movement Control Order (MC).
In a rare occurrence, Genting Malaysia Bhd in its latest annual report said it is not prudent at this juncture to issue any statement on the group’s prospects given the unprecedented times of uncertainty due to the COVID-19 pandemic. Genting Malaysia’s statement was captured in the special section on updates dated April 7, 2020 in […]
Genting Malaysia said it’s injecting $40 million of capital into its loss-making U.S. unit, Empire Resorts, through the issue of series G preferred stock.
Genting Malaysia, which has shut its gaming properties until April 1 under government orders as a Covid-19 countermeasure, is expected to be hard hit by these measures, according to analysts. Affin Hwang Capital has offered the view that, “The decision by Genting Malaysia to close down most (if not all) its facilities in Genting Highlands […]
Genting Singapore said its executives and senior management have agreed to pay cuts to help to offset the impact of the coronavirus on its earnings, which it warns is likely to be significant.
On Wednesday, S&P Global Ratings lowered its long-term issuer credit rating on Genting Malaysia to 'BBB+' from 'A-', citing the firm’s aggressive expansion plans that are increasing leverage and weakening cash flow.
Genting Malaysia registered a marginal increase in total revenue in the third quarter of 2019, rising one percent to RM2.6 billion (US$630 million). Net profit reached RM393.8 million, primarily due to an impairment loss on the Group’s investment in promissory notes issued by the Mashpee Wampanoag Tribe (Tribe) that was recognized in the quarter. While […]
Shareholders of Empire Resorts have approved of its merger with Genting Malaysia, which will see Genting own 38.3 percent of the company. Earlier this month, the Malaysian operator said it paid $9.74 per share for the stake in Empire, which operates the Resorts World Catskills property in New York State. Genting first announced plans to […]
Genting Malaysia said it has acquired 13.2 million shares in Empire Resorts and it owns approximately 38.3 percent of the company.
Genting Malaysia is planning a soft opening of its theme park in Q3, 2020, though the park will be more expensive than anticipated.
Genting Malaysia says a lawsuit filed by an investor against Empire Resorts is without merit.
Genting Malaysia is being sued by a minority shareholder of Empire Resorts who claims that the operator is undervaluing the U.S. company.
Analysts from Affin Hwang Capital have outlined a scenario in which Genting Malaysia becomes the operator of the US$4 billion Resort World Las Vegas once it is completed in late 2020, in a bid to raise its share price. The analysts, who published a note on The Edge Financial Daily on Wednesday, outlined several scenarios […]
Genting Malaysia Bhd is among three companies vying to develop an integrated resort at the former Hellinikon International Airport, near Athens in Greece. According to reports from Casino.org, the other two companies, which are perceived as the current frontrunners, includes Hard Rock and Mohegan Sun. It is also understood that Caesars Entertainment dropped out of […]
Analysts were pleasantly surprised by Genting Malaysia’s solid 19Q2 earnings but said the recent acquisition of Empire Resorts will weigh on long-term earnings. The casino operator posted a net profit of RM416.5 million in the second quarter of 2019, up 5.3 percent year-on-year. Quarterly revenue also grew slightly to RM2.7 billion. Genting Malaysia’s domestic operations […]
Genting Malaysia has issued a statement defending its proposed acquisition of Empire Resorts saying the combination is in the best interests of both companies’ shareholders.
Genting Malaysia has announced plans to privatize the currently-loss-making Empire Resorts Inc, the company which owns and operates Resorts World Catskills in New York. The announcement, however, saw Genting Malaysia shares tumble almost 12 percent by Wednesday’s close, making it one of the top losers on Bursa Malaysia. Genting said the acquisition will be made […]
Genting Malaysia said it has settled all legal proceedings with Fox Entertainment Group and its related companies and as a result will be permitted to use some Fox intellectual property in an outdoor theme park that is under development.
Cambodia’s growing casino and tourism industry could pose a challenge to Genting’s Malaysia operations, according to a note from JP Morgan analysts. In a recent note, picked up by The Malaysian Reserve, the analysts noted that Malaysia is expected to lose its position as the third-largest gaming market in Southeast Asia to Cambodia this year. […]
Genting Malaysia Bhd has withdrawn its application for a judicial review against the Ministry of Finance’s (MOF) decision to amend a tax incentive in December 2017. The casino operator made the announcement in a filing with Bursa Malaysia but did not give any explanation regarding its decision. In 2014, Malaysia’s Ministry of Finance gave its […]
Genting Malaysia Chairman Tan Sri Lim Kok Thay has said he will take a 20 percent pay cut to mitigate the impact of the tax increases imposed in last year’s budget.
Genting Malaysia reported a decline in net profit during the first quarter of 2019, falling 26 percent to RM253.1 million (US$60.4 million). Genting Malaysia said the decline was due to an overall lower volume of business in its gaming segment, largely due to lower incentives offered to customers. The group reported revenue of RM 1.9 […]
The United States House of Representatives has passed a bill that recognizes the Mashpee Wampanoag (MW) tribe’s sovereignty over 321 acres of land, including the site marked for MW and Genting Malaysia’s First Light Resort & Casino. Prospects for the proposed casino in Taunton Massachusetts was thrown into disarray in 2016 due to reservation land […]
RHB Research is optimistic over Genting Malaysia Bhd’s upcoming 19Q1 results, with expectations that the results will help dispel uncertainty over the impact of the tax hike and boost investor sentiment. “Valuation remains undemanding, and the stock should be re-rated come the upcoming results announcement, on top of several potential upside risks,” wrote the research […]
Genting Malaysia Chairman and CEO Tan Sri Lim Kok Thay said the group is cautious about the opportunities in the year ahead, but remains committed to developing an outdoor theme park that has been bogged down by legal issues.
Malaysia-owned super-yacht “The Equanimity” has been sold to Genting Malaysia Bhd for $126 million, after a five-month sale period, local media reports. The superyacht was one of the many luxury items seized by the government as part of its probe into money laundering in the 1MDB scandal. The scandal came about in 2015, when Malaysia’s […]
Genting is likely to see a decline of around 8 percent to 9 percent in group earnings before interest, tax, depreciation, amortization and rent/restructuring costs (EBITDAR) as a result of the Malaysian government’s decision to hike taxes in this year’s budget, though potential cost savings may offset the impact on the group’s financial profile, Fitch Ratings says.
Genting Malaysia said it was reviewing marketing expenses and its cost structure after the government hiked casino taxes and duties in its annual budget, provoking the biggest one-day share price drop on record for the company.
Genting Malaysia saw its second-quarter net profit more than double to RM378.2 million (US$91.6 million), helped by higher revenue from its Malaysian operations. The group’s total revenue in 18Q2 increased by six percent year-on-year to RM2.4 billion, while adjusted EBITDA grew by 31 percent to RM 701.8 million. Genting said its Malaysian business saw a […]
Genting Malaysia has clear catalysts for further growth, though investors are likely waiting for further clarity on the opening of its 20th Century Fox theme park before buying the shares, Nomura said in a research note.
Genting Malaysia has announced that its wholly-owned subsidiary, GENM Capital, has issued RM2.6 billion in nominal value of medium-term notes. Genting said the proceeds of the issuance will be utilized for operating expenses, capital expenditure, investment, refinancing, working capital requirements and/or general funding requirements for Genting Malaysia and its subsidiaries, including financing the development or […]
Genting Malaysia Berhad, operator of Resorts World Genting (RWG) in Malaysia reported a 16 percent improvement in net profit for the first quarter of 2018, according to a filing to Bursa Malaysia. Net profit reached RM342.1 million (US$85.9 million), while total revenue for the group rose 8 percent to RM2.4 billion in 18Q1. Adjusted EBITDA […]
An increase in visitation is expected to drive gaming business at Resorts World Genting this year, although analysts say the two key attractions in its multi-billion dollar revamp are unlikely to be available until the end of this year. Genting Malaysia, the country’s only casino operator, is nearing completion of the Genting Integrated Tourism Plan, […]
Lower revenue from its US business weighed on Genting Malaysia’s 17Q4 results, with group-wide profit and EBITDA falling during the quarter, according to a company filing to Bursa Malaysia. In 17Q4, Genting Malaysia recorded an 11 percent increase in total revenue to RM2.5 billion, however, adjusted EBITDA fell 10 percent to RM669.6 million, and net […]
With the GITP expansion plan expected to start bearing fruit this year, 2018 should be a strong year for Genting Malaysia Bhd, say analysts. Kenanga Investment Bank recently upgraded Genting Malaysia from “market perform” to “outperform, adding that the recovery in VIP volume Singapore and the new market in Japan will also provide opportunities for […]
Malaysia’s Resorts World Genting will open a Zouk Genting nightclub in January as part of its ongoing efforts to revamp the resort and improve its entertainment offerings. The club is created by the team behind Zouk Singapore and the company says it will “revolutionize” Malaysia’s nightlife scene. It will consist of four zones: Zouk Beach, […]
Genting Malaysia posted a 65.2 percent drop in net profit for the three months ended September 30, 2017, due mainly to lower earnings from Resorts World Genting. Net profit for the three months was RM193.4 million, down from RM555.7 million recorded a year ago. Genting said the decline in net profit was also due to […]
There is little chance for the Malaysian government to increase gaming taxes for casino and lottery options, according to AmBank group chief economist Anthony Dass. In a 2018 Budget Preview, Dass said he believes Genting Malaysia scored some goodwill with the government by proposing to spend around RM10 billion in the Genting Integrated Tourism Plan […]
Casino operator Genting Malaysia said its second quarter net profit fell 59.4 percent year-on-year due to lower Adjusted EBITDA and higher depreciation and amortisation from Malaysian operations. Net profit for the three months ended June 30 was RM193.4 million (US$45.2 million), compared to RM476.4 million in 16Q2, while revenue in the quarter was up 2.5 […]
Genting Malaysia is working to recover its US$347.4 million investment in the Mashpee Wampanoag Tribe-owned casino in Massachusetts, which has been put on ice as a result of reservation land issues. The investment was in the form of a subscription to interest-bearing promissory notes issued by the Mashpee Wampanoag Tribe to fund pre-development expenses of […]
Genting Malaysia’s proposed First Light Resort & Casino (FLRC) may not proceed after the Mashpee Wampanoag (MW) tribe unexpectedly withdrew its request for Category 1 review, Malaysia’s The Star reports. Maybank Investment Bank Research in a note on Thursday said it was uncertain if construction of the First Light Resort & Casino (FLRC) could proceed. […]
Casino operator Genting Malaysia Bhd recorded a two-fold rise in net profit in the first quarter of 2017, aided by lower foreign exchange losses on its US-dollar denominated assets. Net profit for the first quarter ended March 31, 2017 more than doubled to RM323.5 million (US$75.5 million) from RM161.6 million which was recorded in the […]
Genting Malaysia Bhd may be forced to write off its $274 million investment in its US tribal casino should the US Department of Interior (DOI) decide that construction of the casino cannot proceed, local media reports. Genting’s venture in the Mashpee Wampanoag tribe’s First Light Resort & Casino (FLRC) started in April 2016. Its investment […]
The Malaysian government passed a Tourism Tax Bill in a mammoth session ending Thursday morning, which analysts say is likely to weigh on the country’s hotel industry and the operator of the only integrated resort, Genting Malaysia. The tax for non-rated hotels will reportedly be set at RM2.50 (S$0.80), while the tax for two-star, three-star, […]
Genting Malaysia may be another beneficiary of China’s decision to restrict travel to South Korea as it rolls out the expansion of its Resorts World Genting resort, local media cited a Credit Suisse report as saying. China has banned travel groups to South Korea from March 15, allegedly in retaliation for South Korea’s approval to […]
Genting Bhd, the Malaysian conglomerate that controls the country’s only casino operator, as well as Genting Singapore and properties in the U.S., Bahamas and the U.K., offers a good value entry point to Association of Southeast Asian Nation gaming markets, CLSA notes. The firm says Genting’s revalued net asset value is at a 24 percent […]
Genting Malaysia saw its net profit increase four-fold to RM1.7 billion (US$382.8 million) in the fourth quarter ended Dec. 31, 2016, compared to RM 338.6 million in 15Q4. Revenue for the quarter was RM2.3 billion, down 0.4 percent year-on-year. The huge jump in profit was attributed to a one-off gain of RM1.3 billion from the […]
Unable to make any significant headway in its Miami project, Genting Malaysia Berhad has reportedly turned some of its attention to a casino in South Florida, Miami Herald reports. “Unable to gain a foothold in Miami, gambling giant Genting Malaysia Berhad has done the next best thing: They’ve made a deal to run a casino […]
Berjaya Corp founder Tan Sri Vincent Tan may submit a fresh application for a license to operate a casino in Malaysia, breaking the monopoly of Genting Malaysia Bhd, local media reports. The billionaire, who relinquished his position as chairman of Berjaya Corp Bhd in 2012 said on Tuesday that Malaysia should have more than one […]
Genting Malaysia’s RM10 billion ($2.4 billion) expansion of its highlands resort will not include any increase of its net casino area, said chairman and chief executive Tan Sri Lim Kok Thay. “We would start to ‘soft open’ part of it at the end of this year, and progressively roll everything out next year. There will […]
Alliance Global, which is working with Malaysia’s Genting Group to build a second property in Manila, says it expects to finalize the blueprint for the resort by June next year. “The master plan would be finished maybe by the first half of next year,” local media cited AGI President and Chief Operating Officer Kingson U. […]
Genting Malaysia said it has sold its 16.87 percent stake in its sister company Genting Hong Kong for about $415 million. The sale price for the 1,431,059,180 shares was $0.29 a share, which represents an 8.2 percent premium to the five-day weighted average trading price. Genting sold the stock to Golden Hope Ltd, a discretionary […]
Casino operator Genting Malaysia has reported solid performance in the second quarter of 2016, helped by strong results in its UK casino operations, according to the firm’s announcement on Thursday. Total revenue in the quarter increased 13 percent year-on-year to RM 2.2 billion ($544.6 million) in 16Q2, while net profit more than doubled to RM […]
The Department of Justice has filed a motion asking a federal judge to reconsider a recent ruling that blocked the development of the proposed Mashpee Wampanoag casino in Taunton, Boston Globe reports. In July, US District Judge William G. Young ruled that the federal government erred last year when it approved the $1 billion Indian […]
Genting Malaysia wants to transfer boat-slip permits from properties on the Miami River to the casino operator’s waterfront site, which has been earmarked for a 50-yacht marina. According to a letter from Kirk Lofgren, the consultant of Resorts World Miami, there is a proposal to transfer 42 slip permits now attached to Austral Marina — […]
Fitch Ratings has affirmed Genting Berhad’s Long-Term Foreign-Currency Issuer Default Rating (IDR) and unsecured rating at ‘A-’, according to a press release. The ratings agency has also affirmed IDRs on Genting Singapore at ‘A-’, with both outlook at ‘stable’. “Genting’s ratings reflect its continued strong market position in the Malaysian and Singaporean gaming markets and […]
Genting Malaysia earnings will see limited impact from oversupply in the region, as earnings have traditionally been driven by mass players, said Morgan Stanley in a note last week. “Based on our forecast, mass/ premium mass players will continue to contribute 55 percent of the revenue. Currently, 70 percent of Genting Malaysia visitors are day- […]
Casino operator Genting Malaysia Bhd has declared a final single-tier dividend of RM 0.043 (US$0.01) per ordinary share for 2015. In 2014, the casino operator declared a final single-tier dividend of RM 0.035. The final dividend is payable on July 26, to shareholders on record as of 4pm on June 30, 2016, said the company […]
Casino operator Genting Malaysia has proposed the renewal of a disposal mandate for its entire 16.87 stake in cruise operator and Philippines casino investor Genting Hong Kong Limited. The original mandate obtained on July last year from its non-interested shareholders was created in order to dispose of its entire 1.4 million GENHK shares. According to […]
Genting Malaysia’s theme park, Twentieth Century Fox World Malaysia will not be completed before the end of 2017, says Japanese-brokerage Nomura. The theme park, covering over 100,000 square meters, is slated to have 25 rides inspired by popular twentieth Century Fox films. In Oct. 2015, Genting Malaysia opted to delay the initial opening date of […]
Genting Malaysia has doubled its planned investment to revamp facilities at its flagship Resorts World Genting property in the Genting Highlands. The company says it will now invest RM10.38 billion ($2.46 billion), up from its original plan to spend RM5 billion on the ten-year Genting Integrated Tourism Plan. The plan was launched in December […]
The Resorts World Bimini project in the Bahamas is set to receive a further US$450 million from Kuala-Lumpur-based Genting. The investment will add another hotel with a minimum of 200 rooms to the project, as well as infrastructure additions including the lengthening of the Bimini airport runway, upgrades to the terminals and flight facilities, a water taxi […]
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 […]
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, […]
Genting Malaysia reported total revenue of RM1.98 billion ($468.6 million) in 15Q2 compared to RM1.91 billion in the prior corresponding period, representing growth of 4 percent. Revenue from the Malaysian leisure and hospitality business increased marginally by 1 percent to RM1.29 billion, mainly due to an overall higher volume of business despite lower hold percentage […]
Genting Malaysia announced that its subsidiary, GENM Capital, has issued MYR2.40 billion ($566.1 million) in notes as part of the company’s Medium-Term Notes Programme. The proceeds will finance “operating expenses, capital expenditure and/or working capital requirements of Genting Malaysia including to finance the development and/or redevelopment of the properties of Genting Malaysia located in Genting […]
RAM Ratings has reaffirmed the corporate credit ratings of Genting Malaysia Berhad at AAA and Stable, as well as the AAA and Stable rating of its proposed RM5 billion ($1.3 billion) medium-term notes programme, to be issued by Genting Malaysia’s wholly-owned subsidiary, GENM Capital Berhad. The ratings firm said Genting Malaysia’s credit profile is supported […]
Fitch Ratings has affirmed Malaysia-based gaming conglomerate Genting Berhad’s Long-Term Foreign Currency Issuer Default Rating and senior unsecured rating at ‘A-‘. Fitch has also affirmed the Long-Term Foreign and Local Currency IDRs of Genting Singapore PLC at ‘A-’. The Outlooks for Genting and GENS are Stable. Genting’s ratings reflect its continued strong market position in […]
Genting Malaysia posted higher Q1 revenue and profit, helped by its businesses in the U.S. and Bahamas, but warned of an uneven economic outlook across the markets in which it operates and said the gaming environment is challenging. Revenue rose 3 percent to RM2.1 billion ($575 million), with a RM57.2 million contribution from its casino […]
Genting Malaysia said it’s seeking a mandate from shareholders to sell its entire 17.8 percent stake in the group’s Hong Kong-listed unit Genting Hong Kong for a price of not less than $0.33 a share in cash, the company said in a Bursa Malaysia filing. The total number of shares being sold is 1,431,059,180, meaning […]
Genting Malaysia is pushing ahead with its overseas expansion plans, though analysts its acquisition of Empire Resorts will weigh on long-term earnings.
Genting Malaysia has been forced into cost cutting mode to offset the negative impact of recent tax rulings, though analysts still expect 2019 to be another tough year for the country’s only operator.
A more than $1 billion legal dispute with Walt Disney Co. and Fox Entertainment over a planned theme park is capping off a roller coaster of a year for Genting Malaysia, with analysts slashing their forecasts for the group.
Asia’s ever-growing number of IRs are seeking to add non-gaming attractions to diversify their tourism base and provide a unique draw, but the jury is out as to whether combining casinos with theme parks can provide a winning combination.
Since entering the US market in 2011 with the launch of Resorts World New York City, Genting Group has made a number of major investments in the country, indicative of an operator intent on becoming a major player in the market. These projects add up to a serious statement of intent in the U.S. from Genting Malaysia Berhad, the subsidiary which runs the Group’s U.S. casino business, even if a number of question marks remain over the particulars of its various interests.
Genting Malaysia, the country’s only casino operator, is ramping up preparation works as it prepares to begin rolling out the first stages of its RM10.38 billion ($2.46 billion) Genting Integrated Tourism Plan in the second half of this year. The company, which has said that it expects the economic environment to be challenging in 2016, is forecast to open its Sky Avenue & Sky Plaza shopping malls, and a new cable car station progressively by the end of the year. However, its much touted Twentieth Century Fox World theme park has been delayed to late 2017. The plan is still seen as the main catalyst for growth at the company as its overseas operations face headwinds.
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.The conglomerate has aggressively embarked on a slew of facelifts or new projects, such as launching new hotels and gaming floors across various properties, in a move to woo the premium mass gambler.
Malaysia’s only casino operator, Genting, is now one and a half years into a huge RM5 billion ($1.3 billion) renovation project at its 50-year-old Resorts World Genting property, with construction works proceeding mostly to schedule. A recent AGBrief visit to the casino found the property busy, despite ongoing works, with a 13 percent increase in hotel capacity scheduled to come onstream in July.
Malaysia’s gaming industry is expected to report weaker earnings this year as the country’s first ever Goods and Services Tax comes into effect from April 1st, crimping revenue at a time of weakening consumer sentiment.The tax has been under consideration by the government for close to a decade and was finally confirmed last October by Prime Minister cum Finance Minister Najib Abdul Razak. The rate was set at six percent.Berjaya Sports Toto and Magnum -- two numbers forecast operators (NFOs) listed on the Malaysian stock exchange -- are facing the prospect of lower revenue as well as lower margins this year, analysts said. "The GST will have the dual effect of both forcing gamblers to reduce their bet sizes as well as serving as an additional tax to the operators, cutting earnings by an estimated 10 percent altogether," said Maybank Investment Bank in a report. Magnum earlier this month gave its own warning that the tax was likely to have a moderating effect on sales. “With the implementation of the Goods and Services Tax on April 1, 2015 and the higher costs of living from the government's ongoing subsidies rationalisation programme, consumer spending is expected to continue to be weak,” it said. “The GST expense based on net gaming supplies – that will be absorbed by the company – will have an impact on our profitability for the coming financial year,” it said.NFOs pay an 8-percent gaming tax on total ticket sales and an 8-percent pool betting duty on net revenue.