New openings drive Genting gaming volume: RHB

The rollout of new facilities at Resorts World Genting has helped to boost gaming volumes in Q1 and the operator is well placed to capture more mass and VIP players going forward, analysts at RHB Research said in a note.

The firm, which has a “buy” rating on the stock said its analysts visited the property on March 15 with clients.

“We were greeted by busy casino floors at both SkyCasino and Genting Casino, especially in the mass area,” it said. “We understand that overall gaming volumes grew in the first quarter of 2019 (1Q19) on newly opened facilities at RWG.”

The company opened its Skytropolis indoor theme park and Zouk Genting in December. The park is 60 percent complete with 22 rides operating and it is expected to be fully finished by the end of this year.

RHB noted that maintenance work was continuing on the outdoor theme park, but gave no update on its status. Genting had been planning to open a Twentieth Century Fox-themed park, though the U.S. company pulled out late last year.

Maintenance costs are estimated at about RM10 million to RM12 million per quarter, the firm said.

Other amenities, such as its VOID virtual reality experience, are gaining traction, while the company is planning to introduce Imaginatrix, a new attraction that combines physical rides and state-of-the-art virtual reality gaming technology, RHB said.