Genting Malaysia Bhd’s US operations are expected to deliver stronger earnings in the second quarter of 2024, a Phillip Capital Research dispatch states.
According to a report by The Star, the brokerage estimates Genting Malaysia’s leisure and gaming business in the United States accounted for about 18 percent to 20 percent of the group’s revenue and EBITDA in 2023.
Phillip Capital Research highlighted that Genting Malaysia’s New York video gaming machine (VGM) facilities, including Resorts World New York City and Resorts World Hudson Valley, reported a combined net win growth of 5.5 percent year-on-year (y-o-y) in 2Q24, outpacing New York state’s overall growth of 4.3 percent.
Resorts World Hudson Valley, owned by 49 percent associate Empire Resorts, delivered the highest net wins growth at 19.4 percent y-o-y on a low-base effect, as it only began operations in December 2022. As a result, VGM’s market share expanded by 0.6 percentage points y-o-y.
However, Resorts World Catskills (owned by Genting Empire Resorts) saw 2Q24 gross gaming revenue (GGR) declining by about 8 percent y-o-y, affected by reductions in slot and table game GGR.
‘With Resorts World Catskill’s GGR remaining flat quarter-on-quarter, we expect Empire Resorts’ 2Q24 EBITDA to be relatively similar to 1Q24 at $3mil,’ Phillip Capital Research said.
‘Overall, we expect an improved performance from the US operations which made up 18 percent to 20 percent of Genting Malaysia’s group revenue and EBITDA in 2023’
The research house also noted the positive development regarding the New York State Gaming Facility Location Board’s updated timeline for the request for applications for three casino licenses, viewing it as a potential re-rating catalyst for Genting Malaysia.
