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https://agbrief.com/news/malaysia/15/06/2023/malaysias-official-admits-online-gambling-players-are-protected-by-political-masters/ | Malaysian official admits online gambling players are protected by political masters | -According to local media, Datuk Seri Saifuddin Nasution Ismail pointed out that “political patronage towards these gambling players (in the country) exists, providing influence and protection for corruption and bribery within the gambling sector. Consequently, the online gambling players are being protected by political masters, so no action can be taken against them.”The official also noted that the police are well aware of the strategies taken by these gambling operators.However, leaked information has impeded serious actions against them. The minister also acknowledged that this issue is the most challenging for the ministry, police, and government.The Malaysian gaming law has been in place for 70 years, since its enactment in 1953, and authorities lack provisions to address online gambling activities effectively, notes the official. Violators can avoid significant criminal charges by taking advantage of this legal loophole.The Malaysian Home Minister noted that a total of 2,119 gambling websites were blocked from 2021 until last month. |
https://agbrief.com/news/malaysia/26/04/2023/sarawak-minister-says-okay-to-casino-for-redevelopment-of-borneo-highlands/ | Sarawak minister says okay to casino for redevelopment of Borneo Highlands | -Commenting on those opposed to the idea, Sarawak’s tourism, creative industry, and performing arts minister Abdul Karim Rahman Hamzah stressed that “the casino would not be the only attraction earmarked for the redevelopment of the Borneo Highlands Resort as there would be other amenities such as a golf course and amusement park”. Sarawak’s government took over Borneo Highlands Resorts last month, planning to return the property into its prime state after winning a lawsuit case involving the ownership. Introducing a casino to the property a possible option being discussed, but according to local media no official decision has yet been made. The same minister stated that “whether a casino will be part of the Borneo Highland resort, we will leave to the state government to decide”. Previously, the resort was operated jointly by Borneo Heights Sdn Bhd and the Sarawak government. However, the Sarawak government opted to terminate the agreement and assume full ownership. |
https://agbrief.com/news/malaysia/29/08/2021/genting-gives-first-figures-for-rwlv-says-food-and-casino-revenue-strong/ | Genting gives first figures for RWLV, says food and casino revenue strong | -Genting Bhd. said revenue for the first six days of operations at its newly opened Resorts World Las Vegas came in at about $14.9 million, driven by “very strong” casino and food and beverage operations.The Malaysian conglomerate opened the first new integrated resort in Las Vegas in more than a decade on June 24. The group has included its first six days of operations in its 2Q21 results, which were released on Friday.Genting said EBITDA during the period was $3.9 million, while the hotel operations were at 71.2 percent with an average daily rate of $239. The company opened its doors to a crowd of 20,000 visitors and more than 5,000 VIP guests. RWLV combines 3,506 guest rooms and suites across three hotels including Las Vegas Hilton, Conrad Las Vegas and Crockfords Las Vegas, over 40 food and beverage venues, world-class entertainment and innovative gaming technology, all prominently located on Las Vegas Boulevard. Additional amenities will be completed and opened in the third and fourth quarters, including The Theatre at Resorts World Las Vegas, Zouk Nightclub and the Spa. Total development and land costs incurred as of 30 June 2021 were approximately $3.9 billion.RWLV President Scott Sibella told AGB recently that the company is expecting 70 percent of its business to come from non-gaming amenities. “Given what we know about today’s Las Vegas traveler, we’ve seen somewhat of a paradigm shift and we’re expecting 70 percent of our revenue to come from non-gaming amenities such as dining, entertainment and more,” Sibella said. “While we will offer an incredible casino experience unlike anything else on the Strip and welcome the traditional gaming customer, our property was designed to resonate well with all types of guests and interests.”The resort opened amidst a strong rebound in U.S. gaming, with Las Vegas reporting record revenues.The Las Vegas Strip saw its July GGR reach $793.7 million in the month, up 46.5 percent compared to the same period in 2019. Analysts from Deutsche Bank weighed in on the surge, noting that on a sequential basis, this was a 30 percent increase in GGR from June and a 25.8 percent increase on a GGR per day basis. Deutsche Bank said this was driven by a 35.8 percent increase in strip slot handle, and a 32.7 percent increase in table volumes compared to 2019. Overall group revenue was RM2,93 billion, an increase of more than two-fold compared with theprevious year. The group, whose businesses also include plantations and oil and gas, posted adjusted EBITDA of RM958.9 million compared with a loss a year earlier of RM578.7 million on that basis. Genting said the improvement in its revenue came mainly from a turnaround in the leisure and entertainment business, which had been mostly closed in the same period a year earlier. |
https://agbrief.com/news/malaysia/18/08/2021/genting-malaysia-resorts-to-open-in-november-maybank/ | Genting Malaysia resorts to open in November: Maybank | -Analysts from Maybank Investment Bank are expecting a delay in the reopening of Resorts World Genting to November this year, following a surge in Covid-19 cases, local media reports. The analysts had initially predicted that its casinos would reopen at the end of August, but its new forecast is based on when the country expects to achieve herd immunity.Genting Skyworld, however, is expected to open in December to coincide with the school holidays. Genting’s casinos in Malaysia have been closed since the end of May.Earlier this week, Malaysia’s outgoing Prime Minister announced that the country will open up more sectors from Monday for individuals who are fully vaccinated as it aims to rebuild its economy.The government said the country administers around 400,000 vaccinates a day and is on track to attain herd immunity in October. Looking ahead, Maybank analysts said it forecasts Genting Malaysia profit of MYR24.2 million in FY22 and MYR26.2 million in FY23. |
https://agbrief.com/news/malaysia/01/07/2021/malaysia-digital-banking-licenses-application-closes/ | Genting applies for Malaysian digital banking license | -Malaysia’s central bank, Bank Negara Malaysia, has closed its application period for five digital banking licenses it is expected to issue by the first quarter of 2022.The period ran until Wednesday, with previous reports indicating some 40 parties had expressed intent.These include casino operator Genting, as well as Malaysia state energy company Petrobas, and low-cost airline AirAsia.Reports indicate the licenses would have an asset threshold of no more than 3 billion ringgit ($722.62 million) for the first three-to-five years of operationThe move by the Malaysian government would open up its banking sector to non-financial players, and keep it on the forefront of the shift to cashless transactions and online lending in place in financial centers such as Hong Kong and Singapore.Nikkei Asia |
https://agbrief.com/news/malaysia/15/07/2022/genting-malaysia-ramp-up-encouraging-but-inflation-a-concern-rhb/ | Genting Malaysia ramp up encouraging, but inflation a concern: RHB | -According to ground checks, hotel rooms were fully booked at Resorts World Genting at the weekends, local media reported RHB as saying. “We were also pleasantly surprised by the large casino crowd on a Wednesday afternoon. As Malaysia’s and Singapore’s borders have reopened, we think that RWG and Resorts World Sentosa (RWS) are likely ramping up efforts to attract tourists from the region,” the firm said.RHB said that Malaysia is also likely benefiting from a weaker currency, which makes now makes it a cheaper destination for regional tourists. However, it adds that historically, about 80 percent of the resorts’ clients are locals. Despite the strong recovery, RHB notes that persistently high inflation rates may eat into discretionary consumer spending going forward. This could impact both gaming and non-gaming, it said. RHB has an overweight rating on the gaming industry. |
https://agbrief.com/news/malaysia/24/05/2021/resorts-world-genting-casino-closed-as-covid-flares/ | Resorts World Genting casino closed as Covid flares | -Resorts World Genting said it has closed its casino until further notice, while other facilities, such as shopping malls and food and beverage outlets will operate under restricted opening hours.The closure comes as Covid cases in Malaysia rise and the government tightens it movement control restrictions.Company statement |
https://agbrief.com/news/malaysia/03/08/2022/maybank-revises-genting-malaysia-target-share-price-on-growth-expectation-in-fy22/ | Maybank revises Genting Malaysia target share price on growth expectation in FY22 | -The brokerage is bullish on the increase in the number of daily visitors which has increased significantly from 2.6k visitors daily in Feb-Mar 2022 to 3k-4k visitors daily from Apr 2022 onwards.Gaming is back on an upswing with traffic returning after the Omicron wave in 1Q22.RWG is buzzing once again post-Covid, mainly because gaming traffic has returned after the Omicron wave in 1Q22 which is expected to set the stage for a better 2Q22 in terms of earnings, the report read. “From 8 Feb 2022 to 31 Mar 2022, Genting SkyWorlds (GS) welcomed 2.6k visitors daily. From 1 Apr 2022 till today, GS welcomed slightly higher 3k-4k visitors daily or only about half of our expectations,” the report read.Asian operations of the company are one of the key contributors to the revenue matrix of Genting Malaysia.Non-members have been allowed to enter the casino since pre-Chinese New Year (1 Feb 2022) and social distancing requirements have been eased since Malaysia reached the endemic stage on 1 Apr 2022.Genting Malaysia owns and operates Resorts World Genting, the only integrated resort in Malaysia. Also owns casinos in the Egypt, UK, US and Bahamas.Resort World Genting (RWG) operations has taken hit due to Labor shortage saturation in Malaysia presenting a hindrance to the property’s recovery to the pre-covid levels. However Indonesia has agreed to lift its ban on sending its citizens to Malaysia to work from 1 Aug 2022 which is expected to ease the labour shortage, the brokerage report said.Whereas Genting SkyWorlds (GS) is taking time to ramp up.“Genting SkyWorlds (GS) is taking time to ramp up while other Resorts World Genting (RWG) operations are being limited by labour,” the brokerage report read.Anticipating the slow and steady growth in routine business operations, the brokerage maintains a more sanguine view.Earnings per share for Genting Malaysia has been revised by the brokerage to 30 percent plus for FY22, whereas 7 percent plus for FY23 and FY24.The financial matrix remains attractive for FY23 and FY24, the brokerage report read.EBITDA wise, Maybank advocates forecast FY22 EBITDA to recover by 349% YoY..The FY23 EBITDA forecast is expected to benefit from RWG’s Genting SkyWorlds theme park ramp-up and the brokerage anticipates 42% YoY growth in FY23 EBITDA.Maybank forecasts FY24E EBITDA to grow by 3% YoY as the COVID-19 pandemic fully subsides.Fueling the anticipated growth trajectories for Resorts World Genting (RWG) is the expansion via the Genting Integrated Tourism Plan (GITP), which is aimed to attract higher visitor arrivals to RWG – the purpose of the GITP is to attract more high margin mass market gamblers.VIP gamblers and mass market mix is expected to impact the growth parameters of GEM because tilt towards the mass market will expand margins due to less commissions and rebates.RWG has poached some experienced theme park staff from Sunway Lagoon, part of the Sunway Group to ensure better operations at Genting SkyWorlds.Three more rides will be added at Genting SkyWorlds this year, bringing the total number of rides to 18 by year’s end.GENM also stated that it introduced a ‘rainy day guarantee’ which allows for a free return within 12 months from a visit to GS marred by rain, which has been much welcomed, the brokerage report states.International businesses of GENM are recovering faster than RWG, Maybank notes.Its international businesses’ earnings have recovered to pre-Covid levels from a combination of revenues returning to or close to pre-Covid levels and fewer staff.Barring a full blown global recession, GENM expects its international businesses to be stable going forward.Overall GENM envisages slow and steady recovery post-covid across its global operations with RGW to remain the anchor.GENM shares 52 week high touched 3.28 MYR and 52 week low was at 2.68 MYR per share |
https://agbrief.com/news/malaysia/10/03/2022/genting-ramping-up-global-operations-as-covid-fears-ease/ | Genting ramping up global operations as Covid fears ease | -Genting Malaysia said it would progressively roll out remaining attractions at Resorts World Genting and ramp up operations elsewhere as borders open and Covid fears ease. Executives from the Malaysian conglomerate gave a corporate presentation at the Nomura ASEAN Virtual Conference last week, as reported by The Edge.Genting Malaysia said it will also proactively manage the group’s cost structure to adapt to the changing operating environment.Malaysia has said it will reopen international borders from April 1st, while rising vaccination rates at home will also support domestic travel. Although the country’s Muslim population is not permitted to gamble, other segments of society have supported growth at the resort.It recently opened its SkyWorlds outdoor theme park, which was the crowning glory of a major overhaul of the property.In the U.S., the company said its slot gaming hall, Resorts World Hudson Valley, in Orange County, is on track to open in summer this year. In New York , a new Hyatt Regency JFK Airport will also be a key driver for growth. It also plans to leverage synergies between Resorts World New York City and Resorts World Catskills to grow its market presence.Genting has been expanding its presence in North America, where gross gambling revenue has now exceeded pre-pandemic levels, and is expected to seek a full casino license in downstate New York. The New York State Gaming Commission is expected to submit a report to the governor and state legislature by June, to be followed by a Request for Applications. As many as three new licenses are expected to be issued from 2023. Genting Malaysia recently reported that it returned to profit in 4Q21 as revenue surged following easing Covid restrictions and said it was paying a special dividend to shareholders.The Malaysian operator reported net profit of RM124 million ($29.5 million) compared with a loss of RM285.1 million in the same quarter a year earlier. There was an 81 percent jump in revenue in the quarter to RM1.88 billion. Adjusted EBITDA was RM738.1 million, more than four times the level reported in the same quarter last year. |
https://agbrief.com/news/malaysia/18/12/2020/new-norms-and-little-luxuries/ | Danny Too: New norms and little luxuries | -The pandemic that brought the world to a standstill, making people evaluate their priorities in life. It is a time when wearing a mask is a “norm” and being able to fly without going through a quarantine is a “luxury”. Attending virtual gaming events and webinars seemed really “weird” and “interesting” at the same time.There will be a lot of interesting new norms on the horizon and a time to make up for lost time of 2020 due to the pandemic. A year where you need to deliver as you will most probably be well-rested by the time we usher in Year 2021. Year 2021 will be a year where we will learn to cherish small little things that seemed insignificant prior to this ravaging Covid-19 pandemic. *Danny Too, General Manager Cherry Interactive |
https://agbrief.com/news/malaysia/17/03/2021/genting-malaysia-buys-back-more-stock/ | Genting Malaysia buys back more stock | -Genting Malaysia has bought back more of its own stock, purchasing MYR4.4 million worth of stock at a price between MYR3.11 and MYR3.15 each. It’s the second buyback in two weeks.Genting Malaysia company filing |
https://agbrief.com/news/malaysia/28/01/2022/genting-skyworlds-gets-thumbs-up-from-analysts-despite-initial-loss-predictions/ | Genting Skyworlds gets thumbs up from analysts despite initial loss predictions | -Genting Malaysia’s long-delayed Skyworlds theme park has been given a thumbs up from analysts who were given a sneak preview of the attraction on Thursday. “We think that the park is well-conceptualised, has a good mix of attractions for all ages, and is likely to be a crowd puller to the highlands resort,” Nomura wrote in a note.The park is estimated to have cost $800 million and has been in the works for almost a decade on legal issues and subsequently Covid. It’s the central plank in a revamp of the Resorts World Genting property. Maybank says the park is likely to be loss making initially due to heavy depreciation costs, but is forecast to add MYR120-180 million in the longer term.The park is now expected to open between mid and late February.The analysts said they rated the park highly, with special mention going to its Independence Day Defiance attraction. Maybank said it expects the park to attract 3.0 million patrons this year, making it the second most visited theme park in ASEAN. Longer-term, Maybank sees the park driving visitor arrivals of about 26 to 27 million a year, above the pre-Covid high of 24 million for Resorts World Genting. “ We believe that the park by itself might not be profitable due to startup costs such as depreciation and interest on debt, but it is likely to be a highly effective “loss-leader” to attract more family groups to the resort, which can boost other forms of revenue such as hotels, gaming and shopping,” Nomura wrote. |
https://agbrief.com/news/malaysia/30/05/2023/rgb-international-reports-profit-of-2-3-million-for-1q23/ | RGB International reports profit of $2.3 million for 1Q23 | -In its 1Q23 results announcement, RGB outlined the improved performance, with its consolidated revenues rising by 197 percent year-on-year to RM95.2 million ($20.7 million). However, revenues were down 21 percent compared to the 4Q22.The Sales and Marketing segment revenues jumped 367 percent, to RM69 million ($15.0 million), with profit up 345 percent to RM10.4 million (US$2.3 million), mainly due to an increase in number of products sold, the company stated.The revenue for the Technical Support and Management (TSM) division increased by 52 percent, at RM25.6 million ($5.6 million), due to better performance and an increase in operating capacity in most of the outlets.Regarding Engineering Services, RGB reported that its revenue rose by 486 percent, to RM533,000 ($116,000).RGB International mentions in the quarterly results that the tourism and hospitality industries are “expected to continue recovering”, aided by the increase in international travellers, especially in the regions where the Group operates.“Based on the favorable market outlook, the Group expects to perform better in financial year ending 31 December 2023, backup by the strong orders secured to date, despite facing inflationary pressure on its operating costs,” notes the company.Hong Kong-listed International Entertainment, a gaming and hotel operator in the Philippines, recently announced that it is purchasing a further 382 slot machines from RGB for some $5.73 million, to be placed in its New Coast Hotel Manila property. |
https://agbrief.com/news/malaysia/09/07/2023/ex-research-chief-of-jp-morgan-malaysia-now-leads-rgb/ | Ex-research chief of JP Morgan Malaysia joins RGB | -Malaysian-based electronic gaming machine manufacturer RGB announced the appointment in a filing with Bursa Malaysia on Thursday (July 6th), saying that Ng has nearly 20 years of experience in the finance market. According to information provided by the firm, Ng was head of equity research at the Malaysian unit of investment bank JP Morgan from August 2020 until June 2023.Ng worked for Deutsche Bank in Singapore as a director and as an equity strategist for the market, covering the countries that make up the Association of Southeast Asian Nations (ASEAN) from 2015 to 2019.He was also with Bank of America Merrill Lynch – now known as Bank of America and BofA Securities – from 2005 until 2014.RGB International has reported profit growth of 418 percent yearly, to RM10.5 million ($2.3 million), for the quarter ended March 31st, 2023.In its 1Q23 results announcement, RGB outlined the improved performance, with its consolidated revenues rising by 197 percent year-on-year to RM95.2 million ($20.7 million). However, revenues were down 21 percent compared to 4Q22. |
https://agbrief.com/news/malaysia/19/10/2023/online-gambling-is-an-offense-malay-court/ | Online gambling is an offense: Malay court | -According to reports, the decision was made by Court of Appeal judges, who rejected a request by a former gambling house operator.The ruling comes in regard to an online gambling location without physical equipment.It specifies that “there is no requirement in the law for the equipment to exist physically on the premises”.“What’s more, in this case, computers and laptops are considered ‘gaming machines.’ Even though technology is advancing, Act 289 is applicable to any form of more sophisticated equipment in line with technological progress,” stated the Deputy Public Prosecutor, as cited by MalayMail.“In conclusion, premises for online computer gambling without any physical equipment fall within the definition of a ‘common gaming house’ under Section 2(d) of the Common Gaming Houses Act 1953,” stated the official. |
https://agbrief.com/news/malaysia/#login-form | Malaysia | |
https://agbrief.com/news/malaysia/02/11/2021/genting-u-s-operations-maintain-momentum-to-support-group-earnings-nomura/ | Genting U.S. operations maintain momentum, to support group earnings: Nomura | -Genting Group’s U.S. operations are maintaining their post-Covid recovery momentum and will continue to provide a positive contribution to earnings, Nomura said.In a monthly review of the group’s U.S. operations, Nomura said the three properties were continuing to generate strong revenue despite a recent uptick in Covid cases. Genting Malaysia owns Resorts World New York City and 49 percent of Resorts World Catskills, while the parent company owns 100 percent of Resorts World Las Vegas, which opened in June. “We believe that the US casinos have managed to sustain their revenue momentum in spite of the recent spike in COVID cases, with GGRs in most cases already above pre-COVID-19 levels,” Nomura said. “This is all the more encouraging as inbound tourism to the US, especially from Asia, has only recently started to pick up.” The firm, which has a buy rating on the Malaysian group’s stocks, said three-month gross gambling revenue at the end of September was $230 million, flat sequentially despite September having been the peak of the latest Covid wave in New York. Revenue is 4 percent higher than pre-Covid levels for the same period.The resort had 6,477 video gaming machines in operation, compared with a capacity limit of 6,500.Resorts World Catskills reported a 28 percent gain in sequential GGR to $64.5 million, 5 percent higher than pre-Covid levels. Nomura said resort-level GGR data isn’t available for the Las Vegas property, but said Nevada as a whole indicates strong pent-up demand. State-wide GGR for the three months was $3.68 billion, up 6 percent sequentially and 59 percent year-on-year. This is 21 percent higher than in 2019. On the Strip demand is up 18 percent sequentially and 25 percent higher than pre-pandemic levels. “We think the next catalyst for the group will be the start of inbound international tourism in their home markets (Malaysia / Singapore).”Singapore is gradually opening its borders despite rising Covid cases, recently announcing travel corridors with South Korea and Australia as well as quarantine-free travel for other highly vaccinated nations. Malaysia is studying pilot openings focused on islands such as Langkawi, however, Genting’s Malaysian property receives strong support from the local market. Interstate travel is now permitted again and Resorts World Highlands reopened at the end of September. |
https://agbrief.com/news/malaysia/06/01/2021/malaysian-government-ups-special-lottery-draws-to-22/ | Malaysian government ups special lottery draws to 22 | -The Malaysian government has reinstated the number of special lottery draws that can be carried out each year to 22, up from eight last year, to raise extra revenue following the pandemic.Malaysia government increases special draws despite Islamist ally’s anti-gambling stance (Straits Times) |
https://agbrief.com/news/malaysia/15/06/2022/genting-group-to-pay-12m-to-settle-lawsuit-over-empire-resorts-buyout/ | Genting Group to pay $12m to settle lawsuit over Empire Resorts buyout | -Bloomberg Law reports that the case also included former Empire board members and awards $3 million in legal fees. The news comes from court filings made in a Delaware court on Tuesday. The investors had claimed that the $9.74 a share transaction in 2019 was the result of pressure from the Malaysian operator and its affiliates. The Malaysian company announced in August 2019 that it planned to take the lossmaking Empire private. Under the terms of the agreement, Genting acquired 13.2 million shares in Empire from its single largest shareholder, Kien Huat Realty III for $128.6 million. The 13.2 million shares represent around 46 percent of Empire’s common stock.Empire operates Resorts World Catskills. |
https://agbrief.com/news/malaysia/29/12/2020/resorts-world-genting-open-not-affected-by-nearby-restrictions/ | Resorts World Genting open, not affected by nearby restrictions | -Resorts World Genting says it remains open and is not part of a nearby area that is subject to an Enhanced Movement Control Order.Company filing |
https://agbrief.com/news/malaysia/17/02/2022/maybank-upbeat-omicron-wont-pose-major-challenge-for-malaysia-gaming/ | Maybank upbeat Omicron won’t pose major challenge for Malaysia gaming | -Malaysia is currently going through a spike in Covid cases due to the Omicron variant, though Maybank says it’s cautiously optimistic the impact on the gaming industry will be limited this time around.Analyst Samuel Yin Shao Yang points to the relatively low mortality rate from this version of the virus and studies the impact on gaming and leisure in Australia, the U.K. and the U.S., which have all gone through a massive spike in cases due to the variant. “To our positive surprise, interest in retails and recreational activities, (which presumably includes gaming) in each of the three countries was only impacted in a minor way,” he said. “Positively, Las Vegas Strip gross gaming revenues continue to trend strongly.”Maybank has a positive view for the prospects of the industry in Malaysia, concluding that Malaysians are still inclined to participate in gaming as long as the risk of serious health implications is low. The firm analyzed the gross jackpot sales for the country’s Number Forecasting Operators and found that they continue to trend strongly.Malaysia’s Covid cases hit a six-month high this week, reaching 24,340 on Monday. In prior outbreaks, such levels would have triggered draconian lockdown measures. Malaysia has said it will reopen its doors for quarantine-free travel for vaccinated travelers from March 1st as it seeks to reboot tourism. It has also re-established vaccinated travel lane corridors with neighboring Singapore, however, there is a quota system in place meaning that traffic is nowhere close to pre-pandemic times.However, that’s not a major issue for the country’s only integrated resort – Genting Malaysia’s Resorts World Genting – which is one of the few in Asia that is not reliant on tourists for revenue due to a strong domestic client base.Although local muslims are not allowed to gamble, the country has a highly diverse population, with Chinese making up 22.4 percent and ethnic Indians accounting for around 6.8 percent. Genting Malaysia recently opened its long-awaited SkyWorlds theme park, which is expected to be a strong driver for visitation, The RM10.38 billion ($2.46 billion) Genting Integrated Tourism Plan (GITP), as it is known, involved the addition of new hotel rooms, expansion of the casino floor, as well as more retail and food & beverage. The initial investment was slated to be MYR5 billion, though the company announced it had doubled its spending plans in 2016.Genting has estimated that the park will help boost visitation to the resort to 30 million in the longer term, compared with the pre-Covid high of 24 million in 2019. Maybank has said it’s more conservative and expects the park to help attract 26-27 million visitors. The park itself is forecast to be loss making due to the high depreciation costs involved, which will run at about MYR330 million per annum, assuming a 10 percent rate. However, the increased visitation will drive further spending in other areas of the property, including gaming. According to Maybank’s analysis, the extra two to three million visitors a year relative to the pre-Covid high may add between MYR120 million and MYR180 million in annual EBITDA. Its forecast is based on average mass market gambling revenue per patron of MYR150. Other investment analysts are also bullish about the prospects for Genting Malaysia this year, predicting a return to profit after Covid-induced losses in 2021.RHB Investment Bank said recently that it expects both Genting and Genting Malaysia to return to profitability in 2022, despite the potential downside risk from Omicron on earnings recovery. “Many countries are now better equipped and nimble in handling the pandemic. Coupled with the massive cost rationalisation efforts undertaken previously by the casino operators, these should partially cushion the impact. Both the casino operators will resume recovering after the Covid-19 situation stabilises,” said the brokerage, in a report picked up by The Edge Markets. |
https://agbrief.com/news/malaysia/14/04/2021/105751/ | HLIB sees long-term positive growth for Genting Malaysia, ups rating | -Hong Leong Investment Bank Research has added its voice to analysts predicting a strong longer-term comeback for Genting Malaysia, upping its rating from a “hold” to a “buy.”While the recovery this year may be slower than predicted due to continuing interstate travel banks, 2022 is expected to see “exponential year-on-year” growth. Key drivers will be the opening of the company’s new outdoor amusement park later this year and improvement in travel.HLIB turns positive on long term prospects for GenM (The Edge Markets) |
https://agbrief.com/news/malaysia/18/03/2021/resorts-world-lv-seen-generating-350m-revenue-in-2022/ | Resorts World Las Vegas seen generating $350m revenue in 2022 | -Resorts World Las Vegas is expected to generate revenue of $350 million in 2022 and EBITDA of $82 million in its first full year after opening this summer, according to Nomura Research.For 2023, the firm is estimating revenue of $477 million and EBITDA of $112 million, basing its model on more than 20 large Las Vegas strip casinos’ financials.However, Nomura warns the new $4.3 billion resort will be a drag on net profit after tax in the initial post-Covid years due to the high costs.For the group as a whole, Nomura says that Malaysian operations will get an EBITDA boost in 2022 due to vaccinations and the new theme park, while 2021 will be bump. Earnings in Singapore will plateau in the first half before travel bubbles.UK operations will remain subdued until mid-May reopening and New York city will remain on a gradual improvement path to to an increase in machine counts.The Bahamas and Catskills will remain loss making in the medium term and may ultimately need more capital injections. |
https://agbrief.com/news/malaysia/01/06/2021/resorts-world-genting-closed-down-as-malaysia-goes-into-lockdown/ | Resorts World Genting closed as Malaysia goes into lockdown | -Genting Malaysia’s Resorts World Genting has now been completely closed to the public after Malaysia entered total lockdown to control its latest Covid outbreak.Only essential services remain in operation.Malaysia began a lockdown of at least two weeks from Tuesday as the country battles one of the highest rates of infection in the region, due to new variants.Resorts World statement |
https://agbrief.com/news/malaysia/23/02/2022/berjaya-assets-sued-for-pulling-out-of-lottery-company-acquisition-deal/ | Berjaya Assets sued for pulling out of lottery company acquisition deal | -Malaysia-based Berjaya Assets Bhd is being sued for RM97.6 million (US$23.3 million) for pulling out of an agreement in 2020 to acquire the remaining stake in a gaming firm that operates number forecast lotteries in Sarawak. According to The Edge Markets, the plaintiff is a company called Violet Circle Sdn Bhd, who alleges that a wholly-owned unit of Berjaya Assets, Tropicfair Sdn Bhd had inked a share sale agreement with Violet Circle for the acquisition in July 2016, but called off the deal in mid-2020. However, Berjaya says its unit had given notice to the plaintiff about the recission of the share sale agreement on the grounds that Megaquest, the lottery operator, had been substantially impaired and thus the share sale agreement has suffered a material adverse change. “Following the said rescission, as disclosed in the Annual Report 2020, the forfeited deposit and liquidated ascertained damages incurred in the company’s consolidated financial statements totalled RM10.8 million. Under the circumstances, Tropicfair avers that it is not liable for payment of the said sum to the plaintiff,” said Berjaya.The company said it “will vigorously defend and oppose any claims” by Violet Circle. |
https://agbrief.com/news/malaysia/30/11/2020/rgb-sees-slow-recovery-posts-narrower-q3-loss/ | RGB sees slow recovery, posts narrower Q3 loss | -RGB International, a Malaysian gambling supplier, said it sees a slow recovery for gaming in Asia and remains cautious for the rest of the year. The company posted a loss of MYR12.4 million in Q3, narrowing from MYR14.4 million the prior quarter.RGB Q3 results (Company filing) |
https://agbrief.com/news/malaysia/04/01/2022/genting-u-s-3-month-ggr-performance-solid-despite-rising-covid-nomura/ | Genting U.S. 3-month GGR performance solid despite rising Covid: Nomura | -Genting Group’s U.S. resorts managed to keep their revenue momentum in November, despite rapidly rising Covid cases, with gross gambling revenue remaining above 2019 levels, according to Nomura Research.At Resorts World New York City, GGR in the three months to end-November was $222 million, down 3 percent sequentially and up 2 percent from the same period pre-Covid in 2019. It had 6,447 operational machines, close to the maximum capacity of 6,500. Resorts World New York City is 100 percent owned by Genting Malaysia.Resorts World Catskills, which is 49 percent owned by Genting Malaysia, 3-month GGR was $60 million, down 1 percent sequentially and 16 percent higher than pre-Covid levels.Operating data for Genting’s Resorts World Las Vegas, which opened in June, is not available, but based on statewide and Las Vegas figures, Nomura notes strip revenue was $2.1 billion, up 3 percent and up 94 percent year-on-year. This is 28 percent higher than pre-Covid GGR.Nomura noted that the recent Omicron variant surge and the winter season might produce weakness in GGR. The New York and Catskills properties also recently imposed mass mandates for all guests.The firm said Genting’s diversification will help cushion the impact of Covid restrictions at home. |
https://agbrief.com/news/malaysia/05/07/2023/meta-working-with-malaysian-authorities-to-combat-online-gambling/ | META working with Malaysian authorities to combat online gambling | -According to official statistics, losses suffered by Malays through META’s operating platforms – namely Facebook, Instagram and WhatsApp – totalled some RM330 million ($70.94 million) in just the first five months of the year.The figure amounts to a 25 percent increase over the total registered in 2022.This comes after a late June announcement by authorities that they would be taking legal action against META over its failure to remove ‘undesirable’ posts on its platforms – this includes sensitive race and religion-related content.In an about turn less than two weeks later, META has now pledged to work with Malay authorities, in particular the Communications and Digital Ministry and Malaysian Communications and Multimedia Commission, alongside the police. |
https://agbrief.com/news/malaysia/27/06/2022/rgb-targets-1000-machine-sales-eyes-profit-this-year/ | RGB targets 1000 machine sales, eyes profit this year | -Managing Director Datuk Seri Chuah Kim Seah was cited as saying by The Star newspaper that 400 machines had already been delivered to customers in Malaysia, Vietnam and the Philippines.Under its TSM business, the group is targeting to lease out about 5,000 gaming machines to casinos and clubs in Cambodia, Laos, Vietnam, Timor Leste and the Philippines.“In the Philippines, we expect to lease out more than 2,800 units with a value of more than US$40mil (RM176mil) this year.“Two more clubs are opening in the Philippines that will require another 270 machines from the TSM segment. The Philippines is our biggest market,” Chuah was reported as saying. The Malaysian company posted a loss of MYR3.31 million in 1Q22, narrowing from MYR4.78 million a year earlier. |
https://agbrief.com/news/malaysia/10/11/2022/fitch-predicting-strong-recovery-by-genting-malaysia-into-2024/ | Fitch predicting strong recovery by Genting Malaysia into 2024 | -The estimates are based on recovery in the Malaysia and US markets, as well as a ‘slower – but steady – EBITDAR recovery in Singapore’ due to the ‘higher dependence on foreign visitors and the hit from an increase in gaming tax from 2Q22’.Genting Malaysia operates Malaysia’s only licensed casino, Resorts World Genting, outside Kuala Lumpur, as well as casinos in the United States, and the UK. It’s a subsidiary of Malaysian conglomerate Genting Bhd.The firm is also bidding for one of the six casino concession up for grabs in Macau – competing against Macau’s current six gaming concessionaire holders, having submitted a failed bid 20 years ago when Macau first liberalized its gaming industry.It currently holds a 40 percent interest in a hotel under development in the SAR.The group notes that it expected the group’s Malaysia revenue, which formed nearly 70 percent of Genting Malaysia’s pre-pandemic consolidated revenue, to reach over 75 percent of 2019 levels this year, rising to 95 percent in 2023.After pandemic measures were lifted in the country in April of this year, ‘recovery should be aided by a limited reliance on foreign visitors and additions to the new Genting SkyWorlds theme park by 4Q22’.The group’s second-quarter revenue spiked almost two and a half times on a year-on-year basis, reaching MYR2.18 billion ($470 million).Cuts to the company’s Malaysia workforce, in 1H22, by 35 percent and limited hiring expectations, as well as ‘better operational efficiency’ and plans to improve yields ‘will enable its EBITDAR margin to remain above the 2019 level, despite the impact of wage inflation and higher spending on marketing and promotional activities,’ note the analysts.Average spending by Genting Malaysia is expected to total MYR800 million between 2022 and 2024 ‘driven mainly by maintenance capex and minor upgrades and additions, as most of the projects under a multi-year redevelopment plan for Resorts World Genting have been completed,’ notes the agency.Fitch is also expecting the group’s capex commitment in Singapore between 2022 and 2024 to be ‘back-ended’ and amount to SG$2 billion ($1.43 billion). This comes as it predicts the group’s Singapore revenues to ‘remain 35 percent below the 2019 level’, rising to 10 percent below 2019 levels next year and set to be par with 2019 in 2024. Genting Singapore had pledged to invest SG$4.5 billion ($3.14 billion) in the expansion of Resorts World Sentosa, as part of the extension of the company’s casino license until 2030.Regarding the group’s Resorts World Las Vegas casino, it expects EBITDAR to ramp up to $350 million by 2025, ‘delayed by around nine months from our previous expectation’ following the property’s opening in June 2019. ‘We think strong visitor inflow into Las Vegas will boost revenue and EBITDAR over the next two years’, following high hotel occupancy in 2Q22 of almost 90 percent. |
https://agbrief.com/news/malaysia/26/11/2020/genting-malaysia-confirms-worker-positive-for-covid-19/ | Genting Malaysia confirms worker positive for Covid-19 | -Genting Malaysia’s Resorts World Genting said one of its security workers has tested positive for Covid-19 during routine health screening protocols. The company said the worker is receiving treatment at a government hospital and did not interact with guests.Confirmed case of Covid-19 at Gentings Highlands (Company release) |
https://agbrief.com/news/malaysia/26/05/2021/genting-malaysia-flags-potential-theme-park-delay-posts-wider-q1-loss/ | Genting Malaysia flags potential theme park delay, posts wider Q1 loss | -Genting Malaysia posted a wider loss for Q1 and flagged a potential delay in the opening of its outdoor theme park due to ongoing Covid restrictions in the country.The net loss came in at MYR501.3 million, compared with MYR453.9 million a year earlier. Revenue dropped 68 percent to MYR623.3 million.“While the group continues to work towards the completion of Genting SkyWorlds outdoor theme park in the third quarter of 2021, the opening date of the park is dependent on developments surrounding the COVID-19 situation and its impact to the leisure and hospitality sector in the country,” it said. |
https://agbrief.com/news/malaysia/08/03/2021/genting-sues-insurers-in-u-s-over-covid-19-losses/ | Genting sues insurers in U.S. over Covid-19 losses | -Genting Group-owned Resorts World Casino New York City and Miami Hilton have filed a suit against more than a dozen insurers claiming they wrongly denied coverage for some US$500 million in losses to the two resorts during the Covid-19 pandemic.Genting Americas sues insurers to claim $500m in losses at two resorts (The Edge Markets) |
https://agbrief.com/news/malaysia/11/03/2021/genting-malaysia-buys-back-1-5m-in-stock-on-open-market/ | Genting buys back US$1.5 million in stock on open market | -Genting Malaysia Bhd (GenM) bought back two million shares on the open market for a total of RM6.31 million (US$1.5 million), with the price ranging between RM3.15 and RM3.16, according to a filing with the local stock exchange today.Genting stock exchange filing |
https://agbrief.com/news/malaysia/26/11/2021/genting-malaysia-to-see-brighter-future-after-3q-earnings-blip-nomura/ | Genting Malaysia to see brighter future after 3Q “earnings blip”: Nomura | -Genting Malaysia’s earnings are likely to improve in 4Q21 and next year, after a “blip” in the third quarter, as its new theme park comes online and borders reopen, Nomura said.The Malaysian operator reported a 42 percent drop in 3Q21 revenue to MYR826.3 million ($194.8 million), while its net loss narrowed to MYR289 million from MYR705 million a year earlier. The group got strong support from its overseas operations, but Covid lockdowns at home pushed its Malaysian operation to an EBITDA loss of MYR165 million from a profit of MYR425 million a year earlier.The group as a whole was EBITDA-positive at MYR62 million, down from MYR301 million a year earlier. The “3Q21 numbers were better than 2020’s worst quarter (2Q20), when even the overseas operations were shut and the cost base was higher,” Nomura said. “We remain positive on GENM, as we believe that investors are likely to look beyond the 3Q21 blip towards a brighter 4Q21F and FY22F, led by the opening of the resort, new attractions, and gradual international border reopening for Malaysia.”Nomura said it was maintaining its buy recommendation on the shares with a target price of MYR3.50.The Genting Highlands Resort was open for just one day in the quarter, although is now seeing a strong recovery since reopening in October, with visitation particularly strong at the weekend.Nomura said management appears to be targeting a year-end opening for its new outdoor theme park, which is expected to be a key driver for growth. The long-delayed park is the center piece in a multi-billion revamp of the resort. Malaysia is considering opening its borders to international travellers on January 1 next year in a bid to accelerate the country’s economic recovery, while the land border with Singapore it expected to open on Nov. 29th. In 3Q21, the U.S. operations were the best performers, with all of the properties open during the quarter. Revenue from the U.S. and Bahamas, where the group operates Resorts World Bimini, soared 421 percent to MYR364 million. Resorts World New York City reported gross gambling revenue of $230 million, stable from the prior quarter, while the share of its loss from its Resorts World Catskills property narrowed to MYR30.9 million, compared with MYR62 million in the prior-year period. Nomura said New York State may be willing to entertain having casinos downstate and has called for a request for information from interested parties. This process will be wrapped up by mid-December, however New York can only issue licenses from 2023.Genting is likely to bid aggressively if the opportunity arises to turn Resorts World New York, which only offers electronic games, into a full-fledged casino. Revenue from the U.K. and Egypt was up 209 percent from the prior year at MYR406 million and up 119 percent sequentially. |
https://agbrief.com/news/malaysia/21/10/2020/asia-turns-up-heat-on-online-gambling/ | Asia turns up heat on online gambling | -Singapore police have busted at least two illegal gambling operations in the past week, while across Asia authorities have moved to stamp out illicit activities, from raids on premier league matches in India, to illegal number forecasting in Malaysia.It’s a perennial problem and the volume of enforcement activity tends to ebb and flow depending on external factors, such as major sporting tournaments. Since the India Premier League restarted in mid September, the arrests for illegal operations have come thick and fast, with almost daily reports of action across the country.While most of the focus recently has been on China’s high-profile threats targeting capital outflows from gambling, there has been plenty of enforcement activity elsewhere.In some of the latest raids, Singapore police arrested a total of 35 people over the past week suspected of running two separate illegal gambling operations. Anyone found guilty of providing remote gambling services in Singapore can be jailed for up to five years or fined between $20,000 and $200,000. Those found to be in a common gaming house can be jailed for up to six months or fined up to $5,000.The stiff penalties don’t seem to be acting as a deterrent. A little under a month ago, an 80-year-old woman was among 33 arrested for gambling in a condo unit at 3 am in the morning.Malaysian police have been wagering war on online gambling for years, stepping up their actions from Sept. 2017, saying this time it’s war. Authorities have ensnared a fair number of police and officials accused of protecting the online gambling networks during their operations.In Malaysia, the legal number forecasting business is being hit hard by illegal gambling. According to a report in The Star, the government may be missing out on about MYR3 billion ($724 million) a year in tax revenue due to the illegal operations, which are said to be expanding. According to CIMB Research, illegal NFOs have been the main drag on legal operations, such as Berjaya Sports Toto, since 2010. In the first seven months of this year, there were 3,015 raids on illegal gambling dens in Malaysia, the report said.There surely comes a point when authorities realize that they could raise substantial sums of money from legalizing the industry in Asia and save money on the enforcement operations, which clearly are not working. |
https://agbrief.com/news/malaysia/15/08/2021/malaysia-relaxing-measures-for-vaccinated-individuals-as-pm-resigns/ | Malaysia relaxing measures for vaccinated individuals as PM resigns | -Malaysia’s outgoing Prime Minister has announced that the country will open up more sectors for individuals who are fully vaccinated as it aims to rebuild its economy. The new guidelines take effect on Monday, including numerous types of stores, which the official notes should “offer some emotional and mental relief”. It’s unclear yet how the relaxing of measures will affect casinos, however, a check across the websites of Genting’s Malaysian casinos show they are still temporarily closed until “further notice”. Casinos in Malaysia have been closed since the end of May. The measures are set to take effect the same day that Malaysia’s Prime Minister tenders his resignation, with the Straits Times noting he will offer various options “including resigning, dissolving Parliament, and a minority government”. The political shift is unlikely to cause large disruption to casino operators. |
https://agbrief.com/news/malaysia/29/06/2021/malaysia-announces-36b-stimulus-package-as-lockdown-extended/ | Malaysia announces $36b stimulus package as lockdown extended | -Malaysia’s government has announced a RM150 billion ($36.1 billion) stimulus package, its fourth this year, to offset the impact of an indefinite lockdown.The country’s lockdown, in place since June 1st, was to have ended Monday. However, the country’s new case load on Saturday was 5,803, well above the 4,000 threshold set for further easing.The stimulus plan includes a direct RM10 billion cash disbursement to citizens by the end of the year and an automatic approval for a six-month moratorium on loan repayments.Business Times |
https://agbrief.com/news/malaysia/18/12/2020/local-vips-support-resorts-world-genting/ | Local VIPs support Resorts World Genting | -TA Securities analyst Tam Kan Meng said company executives on a conference call attributed the strength at home to support from local VIPs, who have been unable to travel overseas to gamble due to border closures. Total visitation to the hilltop resort returned to 66 percent of pre-Covid measures, with gaming revenue back to 74 percent. VIP players made up 64 percent of the total in the period. Leisure and hospitality revenue is down 34.2 percent year-on-year to RM1.2 billion, but that performance is “satisfactory,” says Tam as the group has regained more than 60 percent of its prior levels, even with reduced capacity.Still, TA Securities is cutting its forecasts for Genting Malaysia next year and says it expects the operating environment in the first half to be similar to Q3. It has cut its earnings projections for 2021 by 30.4 percent to RM499 million and for 2022 by 1.8 percent to RM1.4 billion. Analysts at CGS-CIMB were more upbeat than TA Securities, noting that they expect a recovery to be imminent and subsequently raised their forecasts.“ We see FY21F net profit recovering to RM563 million,”For 2021, they raised their core earnings per share forecast by 3 percent and for 2022 by 6 percent, saying they are factoring in lower operating expenditure. “We see FY21F net profit recovering to RM563 million, then doubling in FY22F, as visitors fully return (partly bolstered by Genting SkyWorlds’s mid-2021 opening),” they noted. Management have confirmed that they expect the outdoor theme park to open in the middle of next year. The much anticipated attraction was one of the central planks of the revamp of the resort. It has been delayed in part by a dispute with former partner 20th Century Fox. Nomura analysts also said they were pleasantly surprised with the performance in Malaysia.“What really struck us [positively] was the revenue/margins generated by the Malaysian resort, with revenue at 66 percent and EBITDA at 79 percent of year-ago levels, and EBITDA margins of 36 percent in Malaysia,” they said.However, TA Securities reports management as saying that margin level is unlikely to be sustained in 2021 due to additional costs from running the theme park.Genting Malaysia itself is maintaining a cautious outlook, warning that ongoing measures taken to control the pandemic will continue to have an impact on its business.The government announced on Nov. 4 that several more states have been added to its Conditional Movement Control Order list and that the order had been extended to December 6 in the Kuala Lumpur area. Prior to the pandemic, the Genting Highlands resort had about 50,000 visitors a day. That number is currently at about 15,000 a day due to the latest clampdown.In the U.K., the group’s casinos were forced to close their doors again on November 4th, while its New York properties – Resorts World New York City and Resorts World Catskills were closed throughout much of Q3, reopening only on Sept. 9th.The Malaysian government is losing up to MYR3 billion (US$725 million) a year in revenue as illegal gambling syndicates take an ever growing amount of business away from legal number forecast operators. The activities of these illegal 4D operations have grown bigger and more sophisticated over the last decade, eating up market share by the day, the Straits Times cited an industry source as saying.“These illegal 4D syndicates do not only offer bigger cash prizes compared with the legitimate NFOs but extended credit and allowed online buying via WhatsApp on draw days,” said the source.The Communications and Multimedia Content Forum of Malaysia has issued industry guidelines to provide clarity on certain advertisements, including a provision that advertisements directly encouraging any form of gambling are not acceptable. The Malaysian Communications and Multimedia Content Code doesn’t establish legally enforceable responsibilities. Instead, the guidance describes the CMCF’s current thinking on a topic and would be used as industry best practices that promote self-regulation, unless specific regulatory or statutory requirements are cited. |
https://agbrief.com/news/malaysia/26/11/2021/resorts-world-lvs-3q-results-dampened-by-mask-mandate/ | Resorts World LV’s 3Q results dampened by mask mandate | -Genting said the 3Q21 performance of its newly opened Resorts World Las Vegas property was hurt by a July mandate from the State of Nevada requiring masks to be worn, regardless of vaccination status.The $4.2 billion resort opened its doors on June 24. In 3Q21, it reported revenue of almost $175 million and EBITDA of $27 million. Hotel occupancy for 3Q21 was 54.9 percent as several conventions were cancelled as a result of the mandate, the company said. The mask mandate came into force on July 30.The Zouk Nightclub, spa and more retail outlets and restaurants were opened in the quarter, with more to be added in 4Q21. The resorts theatre is also expected to open this quarter. |
https://agbrief.com/news/malaysia/14/10/2020/thailand-malaysia-step-up-anti-online-gambling-efforts/ | Thailand, Malaysia step up anti-online gambling efforts | -Thailand’s anti-online gambling efforts continue to show results, while Malaysia’s crackdowns keep exposing crooked cops.Thailand, Malaysia cracking anti-online gambling whips (Calvin Ayre) |
https://agbrief.com/news/malaysia/ | Malaysia | |
https://agbrief.com/news/malaysia/13/01/2021/malaysias-number-forecast-operators-close-shop-as-covid-cases-rise/ | Malaysia’s number forecast operators close shop as Covid cases rise | -Sports Toto Malaysia, Magnum Bhd and Pan Malaysian Pools have again closed their outlets in areas under Movement Control Orders due to rising Covid-19 cases. The affected areas are Penang, Selangor, Melaka, Johor and Sabah as well as the federal territories of Kuala Lumpur, Putrajaya and Labuan.Number forecast operators close outlets in MCO areas (The Edge Markets) |
https://agbrief.com/news/malaysia/23/11/2021/apac-tourism-to-return-faster-than-business-travel-in-2022-fitch/ | APAC tourism to return faster than business travel in 2022: Fitch | -Tourism is likely to rebound faster than business travel in the Asia Pacific region in 2022, with the operating environment for airports likely to improve, Fitch Ratings said.In its 2022 outlook for transportation infrastructure, the ratings agency said that the ramping up of vaccines and availability of boost shots are paving the way for a return to normality in many Asian countries.“Travel restrictions have been easing, and a few countries such as Australia, Thailand and Indonesia have reopened or been set for reopening, which will revive international travel and rejuvenate tourism,” it said.That said, it cautioned that it doesn’t expect a full recovery of air traffic in APAC as a whole because China and some other countries may stick with a zero Covid policy and delay reopening.Fitch also said it expects toll roads and ports to normalize as the demand and supply equilibrium is gradually restored. Some international tourism travel has already resumed, with Vietnam’s Phu Quoc island welcoming 200 travellers from South Korea this month, its first in two years. South Korea has also seen visitor arrivals from Singapore, while Thailand and Cambodia are also reopening their borders.Singapore has instituted a system of travel lanes for fully vaccinated passengers from certain countries, while the Commonwealth of Northern Mariana Islands has also seen some tourism traffic return. To date, China has shown no signs of easing its stringent border restrictions, which is likely to mean that Asia’s resorts will be without their key tourism source market for the foreseeable future. |
https://agbrief.com/news/malaysia/11/11/2020/malaysia-allocates-3-6m-for-esports-development/ | Malaysia allocates US$3.6 million for eSports development | -Malaysia has allocated money to develop its eSports sector for the third year in a row in its annual budget, this time earmarking about US$3.6 million.Malaysia government allocates over $3.6m for eSports development in 2021 budget (European Gaming) |
https://agbrief.com/news/malaysia/05/11/2020/genting-outlook-cut-to-negative-by-fitch/ | Genting outlook cut to negative by Fitch | -Ratings agency Fitch has again taken its red pen to Genting Group and its subsidiaries, downgrading its outlook from negative to stable. The long-term issuer default rating remains at BBB.Fitch cut the actual rating from BBB+ to BBB on Oct. 16. |
https://agbrief.com/news/malaysia/11/05/2021/genting-malaysia-stock-falls-on-tighter-movement-controls/ | Genting Malaysia stock falls on tighter movement controls | -Shares in Genting Malaysia closed down 3.8 percent on Tuesday after the government unexpectedly imposed a nationwide movement control order until June 7th.The movement control order is likely to severely restrict visitation to the company’s Resorts World Genting property.Malaysia stocks, currency decline after nationwide virus curbs (Bloomberg) |
https://agbrief.com/news/malaysia/07/07/2021/malaysian-police-bust-rm2-8mln-gambling-syndicate/ | Malaysian police bust RM2.8mln gambling syndicate | -Police in Kuching, the most populous city in Malaysia’s Sarawak state, have busted a RM2.8 million ($670,000) gambling ring.The authorities arrested four men who they believe to be part of the syndicate, which they say was operating for the past six months.Police say they promoted online gambling using social media applications such as WhatsApp, Facebook, WeChat and Telegram, targeting locals and operating 24/7.Malay Mail |
https://agbrief.com/news/malaysia/08/01/2021/rwg-says-canteen-workers-test-positive-for-covid-19/ | RWG says canteen workers test positive for Covid-19 | -Genting Malaysia said several canteen workers at its Resorts World Genting resort had tested positive for Covid-19 during regular health screening in early January. The canteens are not accessible to the public.Resorts World Genting (Company statement) |
https://agbrief.com/news/malaysia/20/07/2022/staff-shortages-crimp-genting-malaysia-recovery-cgs-cimb/ | Staff shortages crimp Genting Malaysia recovery: CGS-CIMB | -The firm expects Malaysia’s monopoly casino operator to stage a full recovery in 2023.Resorts World Genting is seeing strong pent up demand, boosted by local tourism and the return of some foreign visitors, especially from Singapore.However, it was only operating 5,500 hotel rooms out of a total of 10,500 in mid May, with this figure likely to have improved to about 6,000 in June.The resort is hiring more staff and plans to open more rooms in coming months, it said. The newly opened SkyWorlds theme park is also still not operating at full capacity with only 15 out of a total of 19 rides currently open. A further three are expected to be added by the end of this year. CGS-CIMB said there had been mixed feedback from the highly-anticipated park, with online complains about the intermittent closure of rides due to technical difficulties. It said it expects these teething problems to be resolved swiftly. Genting Malaysia, which derives the majority of its revenue from its domestic operations, opened its delayed SkyWorlds theme park in February this year, which analysts expect to be a key driver of visitation to the property.The park is the centerpiece of the MYR10.38 billion ($2.46 billion) Genting Integrated Tourism Plan, which adds new hotel rooms and facilities to Resorts World Genting (RWG). It also increased the size of the casino floor. Analysts at Hong Leong Investment Bank have said they expect a strong recovery for the operator in the second half, boosted by pent up demand.“From our ground checks, casino capacity has increased as the restriction on the number of players per table has been lifted, while the footfalls observed in the casino were also very encouraging,” the note said. “We believe visitations to RWG should improve meaningfully in 2Q22,” it said earlier this month. The firm expects international tourism to continue to pick up. By June 21st, Malaysia had already surpassed its target for the full year of two million incoming visitors, even though that was still only 17 percent of the pre-pandemic levels for the same period. |
https://agbrief.com/news/malaysia/19/11/2020/malaysia-probes-police-involvement-in-online-gambling-fraud-scam/ | Malaysia probes police involvement in online gambling/fraud scam | -The Malaysian police force is opening an investigation paper into the alleged involvement of senior officers with individuals being held in connection with the so-called Macau Scam and online gambling syndicates.Cops involved in Macau Scam, online gambling will be investigated (New Straits Times) |
https://agbrief.com/news/malaysia/05/01/2021/malaysias-casinos-to-rebound-faster-than-number-operators-kenanga/ | Malaysia’s casinos to rebound faster than number operators: Kenanga | -Kenanga Research expects Malaysia’s casino operator to rebound more swiftly than its number forecast operators, as border restrictions ease. The sector valuation remains attractive as gaming stocks were still 15-26 percent cheaper than a year ago.Gaming sector poised to recover from washed-out year (New Straits Times) |
https://agbrief.com/news/malaysia/02/03/2021/rgb-losses-at-us1-6-million-in-q4-2020/ | RGB losses at US$1.6 million in Q4 2020 | -Malaysia-based electronic games and services supplier RGB International has reported a fourth quarter loss of MYR6.4 million (US$1.6 million) based on total revenues of MYR52.2 million.Interim Unaudited Financial Statements (release) |
https://agbrief.com/news/malaysia/24/01/2022/lim-kok-thay-steps-down-as-genting-h-k-ceo-after-petition-to-wind-up-company/ | Lim Kok Thay steps down as Genting H.K. CEO after petition to wind up company | -Billionaire businessman Lim Kok Thay has stepped down as chairman and chief executive of Genting Hong Kong after the cruise ship operator filed a petition in a Bermuda court to wind up its cash-strapped business.The company said in a filing with the Hong Kong Stock Exchange that deputy CEO Au Fook Yew had also stepped down, putting it in breach of stock exchange listing requirements. It said it would seek to find suitable candidates to fill the vacancies as soon as possible.It gave no further comment on the resignation of Lim, who is also head of the Genting Group and the second son of Lim Goh Tong, who founded the conglomerate. Genting Hong Kong confirmed it filed for bankruptcy protection in a Bermuda court last week after efforts to find a solution with creditors failed and said it expects to run out of cash on hand by the end of this month.As the group has no access to further liquidity, it expects it will imminently be unable to repay its debts as they become due. The cruise ship operator said that the petition is essential to allow the company to negotiate a potential debt restructuring and to avoid a disorderly sale of its assets as creditors call in debts.Genting said it will continue to operate its Dream Cruises Holdings in an attempt to preserve core assets and maintain the value of the group, but it said the majority of its operations will cease. The company owns two German shipyards, Star Cruises, Crystal Cruises and has a joint venture in Manila, which runs Resorts World Manila.Crystal Cruises subsequently confirmed it had suspended operations for its Ocean and Expedition ships through to April 29th to allow management to evaluate its options after parent company Genting Hong Kong filed for bankruptcy protection.The company also said River cruises would be suspended through to the end of May.Crystal’s three ships currently in operation – Crystal Serenity and Crystal Symphony sailing in the Caribbean and Crystal Endeavor in Antarctica – will complete their current voyages. Crystal Symphony’s current voyage ends in Miami on January 22, Crystal Serenity in Aruba on January 30 and Crystal Endeavor in Ushuaia, Argentina, on February 4. Genting H.K. was plunged into financial difficulties after Covid forced the shutdown of the global cruise industry. It agreed a financial restructuring package with creditors last May. However, that unravelled after the German state of Mecklenburg Vorpommern failed to provide an agreed $88 million backstop facility unless the company agreed to further conditions on the financing.The action triggered the insolvency of one of the group’s German shipyards, which in turn lead to a series of cross defaults within the group. The company has said it risks default on some $2.7 billion in debt. |
https://agbrief.com/news/malaysia/27/12/2021/hlib-upgrades-rating-for-malaysian-gaming-sector-genting-top-pick/ | HLIB upgrades rating for Malaysian gaming sector, Genting top pick | -Hong Leong Investment Bank (HLIB) Research has upgraded its rating of the gaming sector from “Neutral” to “Overweight”, as countries become better at handling new outbreaks and investors become immune to Covid-19 related news. In a report released last Thursday, HLIB said that though the recovery path of the gaming industry is likely to be choppy due to Covid, global governments are recognizing the detrimental effect that full lockdowns have on the economy and is steering away from those types of measures to fight the pandemic. “Thus, this will help to pave a more sustained recovery path for gaming companies compared to 2021 when the industry was plagued with multiple prolonged lockdowns,” it said. Investors are also becoming increasingly immune to reacting to outbreak news – though Malaysian gaming stocks fell on the discovery of the new Omicron strain, the stocks soon rebounded, according to a report from The Star. HLIB said its top pick for the gaming sector is Genting Bhd, which it says is “trading at a huge holding discount of over 50% to its SOP (sum-of-parts) valuation”. “We like Genting for its deep expertise and experience in managing the gaming and hospitality businesses and its well-spread operations across different regions, which help to mitigate regulatory and country risks. Furthermore, Genting provides exposure to RWLV (Resorts World Las Vegas), which we believe to have strong growth potential in the longer term.”The research house also believes that prospects for Genting Malaysia Bhd (GenM) “are improving with the return of crowds to Resorts World Genting, SkyWorlds opening and positive contributions from its US and UK operations”. |
https://agbrief.com/news/malaysia/09/05/2022/maybank-cuts-eps-expectations-for-genting-malaysia-as-omicron-drags/ | Maybank cuts EPS expectations for Genting Malaysia as omicron drags | -Maybank Investment Bank has cut its profitability expectations for Genting Malaysia for full-year ending December 31, 2022, with omicron continuing to weigh on hotel performance at Resorts World Genting.In a Friday note, Maybank said it had cut Genting Malaysia Bhd’s earnings per share (EPS) by 40 percent. Analyst Yin Shao Yang said that business at RWG had slowed from March due to an outbreak of omicron, with RWG currently only opening about half of its room capacity despite being allowed to reopen them all from April 1. According to a report from The Edge Markets, the analysts have cut their FY22 estimated visitor arrivals to RWG to 21 million, down from a previous estimate of 24 million. Maybank’s expectations for FY23 and FY24 EPS – which are based on 26 million and 27 million visitors arrivals, respectively, remain unchanged at the present time, with the resort expected to reopen all 10,000 rooms from FY23 onwards. Maybank’s channel checks have also revealed that there has been a reduction in the number of Malaysian VIPs flying overseas to gamble, with many focused on rebuilding their businesses and the weak Malaysian ringgit (MYR) discouraging overseas travel. That being said, more Singaporean mass-market gamblers are expected to travel to RWG due to the stronger Singaporean dollar. |
https://agbrief.com/news/malaysia/08/02/2022/malaysia-to-reopen-for-quarantine-free-travel-from-march-1st-to-boost-tourism/ | Malaysia to reopen for quarantine-free travel from March 1st to boost tourism | -Malaysia said it will reopen its borders for quarantine-free travel from March 1st to help boost its economy.According to local media reports, the National Recovery Council approved the plan on Tuesday. The borders will be open to travellers from all countries.Testing will need to be carried out before departure and on arrival into the country. “This means tourists can visit, investors can come in,” NRC Chairman Muhyiddin Yassin told a press conference. “The number of tourists will increase, and the tourism industry can recover.“The aviation industry can recover … and shops that depend on tourists will have increased business. We believe this decision is a good one but at the same time we have to make sure that the SOPs are adhered to,” he said.Malaysia recently resumed a vaccinated travel lane program with neighbouring Singapore that was put on hold due to Omicron. It also agreed to begin a corridor with Indonesia. |
https://agbrief.com/news/malaysia/26/05/2022/genting-says-1q22-at-rwlv-hit-by-omicron-but-results-improving/ | Genting says 1Q22 at RWLV hit by Omicron, but results improving | -Genting said 1Q22 performance at its Resorts World Las Vegas property was hit by Omicron, which affected group and leisure travel to Las Vegas, but that the situation was improving.The Malaysian conglomerate said it had seen rebounding travel trends, with strong demand for RWLV’s properties and services. 1Q22 hotel occupancy started at 54 percent in January and finished at 85 percent in March. It gave no further details for the Las Vegas property. The $4.3 billion Resorts World Las Vegas opened in June last year. It was the first fully new property to be built on the Strip in more than a decade.It has 3,500 rooms distributed across three premium Hilton brands. The casino has 117,000 square feet of gaming space, with some 120 tables and 1,400 gaming machines, as well as state-of-the-art technology and nightlife concepts, such as Singapore’s Zouk Club. It also has a 5,000-seat auditorium featuring acts including Katy Perry and Celine Dion. Analysts at Nomura have said that the ramp up of the property has been slower than expected. According to its estimates Resorts World Las Vegas reported revenue in 4Q22 of MYR716 million ($170 million), whilst EBITDA was MYR96 million ($23 million) in the quarter, a slight fall from that of 3Q21. |
https://agbrief.com/news/malaysia/25/11/2022/genting-malaysia-narrows-its-3q22-loss-to-1-84mln/ | Genting Malaysia narrows its 3Q22 loss to $1.84mln | -The results announced on Thursday, indicated a sharp rise in group revenue, totaling RM2.27 billion ($505 million), up 174 percent yearly.The group operates Malaysia’s only license casino property – Resorts World Genting, as well as casinos in the United States, the UK, Bahamas and Egypt.During the period, the Malaysian operations leisure and hospitality segment recorded revenue of RM1.39 billion ($309.26 million) , ‘primarily driven by the strong recovery in overall business volume registered at Resorts World Genting (RWG) after the reopening of the national borders and higher contributions from the non-gaming segment following the launch of the new Genting SkyWorlds theme park’.The group notes it was ‘heavily impacted’ by the closure of RWG from June 1st to September 29th of last year under a nationwide lockdown, helping the comparative upticks for 3Q22.The group notes that it ‘remains cautiously optimistic on the near-term outlook of the leisure and hospitality industry’, being ‘encouraged by the increase in visitation at RWG’.Regarding the group’s US operations, which together with its Bahamas segment brought in RM424.9 million ($94.53 million), a 60 percent yearly increase, the group notes it is ‘ready to capitalize on revenue and growth opportunities’, noting in particular the lifting of a moratorium in New York on the remaining three downstate casino licenses.It notes that its ramp-up of Resorts World New York City (RWNYC) ‘continues to be a key focus’ and that it plans to open its Resorts World Hudson Valley property ‘by the end of the year’. |
https://agbrief.com/news/malaysia/06/05/2021/resorts-world-lv-gets-high-praise-from-gaming-board/ | Resorts World LV gets high praise from gaming board | -Genting’s Resorts World Las Vegas property has received licensing approval from the Nevada Gaming Control Board, which praised the $4.3 billion project and its execution.“The background is outstanding, the company is incredible, financials are great and ratios are outstanding,” Board Chairman Brin Gibson was cited as saying by local media. “I have nothing but praise for this application. I have no concerns.” |
https://agbrief.com/news/malaysia/26/08/2021/genting-malaysia-2q-revenue-soars-but-warns-lockdowns-to-weigh/ | Genting Malaysia 2Q revenue soars, but warns lockdowns to weigh | -Genting Malaysia said its 2Q21 revenue soared more than seven times from the same quarter of last year, but warned that the latest lockdowns in the country will weigh on business going forward.The group reported total revenue of MYR817.9 million ($195 million), compared with MYR114.9 million in 2020. Revenue from the U.S. and the Bahamas overtook Malaysia at MYR 352.9 million, up from negative MYR31.6 million, while Malaysia saw revenue gain 188 percent to MYR237.9 million.As a result the group swung back to profit at the EBITDA level of MYR44.8 million from a loss of MYR593.4 million a year earlier. The net loss narrowed to MYR371 million from MYR1.04 billion. Genting said that while it has seen some encouraging signs in terms of resumption of international travel, the regional gaming market in Asia will remain challenging in the short term. The group’s Resorts World Genting property in Malaysia has been under lockdown since June 1, as the government imposed restrictions to curb the spread of Covid and the company gave no indication of when it may be permitted to reopen.Genting said the closure will “significantly impact,” the group’s business. “In Malaysia, economic recovery is expected to be delayed by the earlier re-imposition of containmentmeasures nationwide and increased spread of COVID-19,” it said.To mitigate the loss of revenue, the company said it will continue to monitor its cost base. The “timely” completion of its outdoor theme park Genting SkyWorlds will also be a key focus, it added without giving details on timeframe. Elsewhere, Genting said it had been encouraged by the “recovery momentum” it had seen in the U.K. since it was permitted to reopen its casinos on May 17. It said it will continue to ramp up its operations there as curbs are eased. It also plans to assess its cost structure to better align expenses with the new operating environment.The group has also seen a strong rebound in demand in New York state, where it owns Resorts World New York City and Resorts World Catskills. It said it plans to increase its focus on developing its local exposure and pushing the synergies between the two properties to improve business volumes and margins. |
https://agbrief.com/news/malaysia/23/09/2021/malaysia-to-ease-travel-curbs-when-90-vaccination-target-hit/ | Malaysia to ease travel curbs when 90% vaccination target hit | -Malaysia is set to shed interstate travel restrictions once 90 percent of the adult population is fully vaccinated, Prime Minister Ismail Sabri Yaakob said in a statement on Wednesday.On Tuesday, Malaysian Tourism Minister Datuk Seri Nancy Shukri announced that Malaysia’s Resorts World Genting and two other tourism destinations will be given the green light to reopen by October 1, as the country expands its domestic travel bubble.The announcement came a day after the country met its 80 percent full vaccination target. |
https://agbrief.com/news/malaysia/12/04/2022/rwlv-ramping-up-cash-flow-positive-from-opening-day-says-sibella/ | RWLV ramping up, cash-flow positive from opening day, says Sibella | -Genting’s Resorts World Las Vegas (RWLV) is seeing a ramp-up in occupancy and has been cash-flow positive since it opened last year despite the challenges brought by Covid, property president Scott Sibella said.Sibella was speaking in a videotaped address to ICE London’s International Casino Conference. He said Las Vegas is now beginning to see the return of convention business, as well as the return of some international travel. “We worked hard to open on time and on budget,” he said. “We anticipate travelers to Las Vegas will continue to improve and we hope to take advantage of the pent-up demand.”The $4.3 billion Resorts World Las Vegas opened in June last year. It was the first fully new property to be built on the Strip in more than a decade.It has 3,500 rooms distributed across three premium Hilton brands. The casino has 117,000 square feet of gaming space, with some 120 tables and 1,400 gaming machines, as well as state-of-the-art technology and nightlife concepts, such as Singapore’s Zouk Club. It also has a 5,000-seat auditorium featuring acts including Katy Perry and Celine Dion. Sibella said the property sits on an 88-acre plot, but so far has only developed 42 acres, leaving plenty of scope for future development.Walking ICE delegates through some of the key features of the property, Sibella said that the adoption of technology at RWLV is what really sets the property apart. “We offer a variety of new age tech advancements across the resort, allowing guests to access almost everything via a mobile device,” he said. “Our vision was to develop an advanced casino floor that offers convenience, rewards flexibility, accuracy, and accountability.”He said the initial response from customers to the technology had been favorable. Despite Sibella’s upbeat comments, some analysts have said the ramp-up had been slower than they had anticipated.According to estimates from Nomura, Resorts World Las Vegas reported revenue was MYR716 million ($170 million), whilst EBITDA was MYR96 million ($23 million) in the quarter, a slight fall from that of 3Q21.“Given consensus’ expectations of a continued ramp-up in RWLV, this performance might come as a negative surprise,” said the analysts in a February note. |
https://agbrief.com/news/malaysia/10/07/2023/rgb-plans-to-sell-more-4000-gaming-machines-this-year/ | RGB plans to sell 4,000 gaming machines this year | -Datuk Seri Chuah Kim Seah said that Cambodia, Laos, Vietnam, Timor Leste, and the Philippines are the main market for the gaming machine business. Speaking to Malaysian media The Star, Chuah said the company is expecting to deliver half of the 4,000 machines by mid-year, and that in the same period the Malaysia-based electronic gaming machine manufacturer has leased out about 5,000 gaming machines, which will generate some RM100million ($21.4 million) in revenue this year.A fire incident in Cambodia last year led RGB to write off RM5.8 million (1.24 million) in machines. “After the write-off, we still made RM3.9 million ($840,000) in net profit,” Cheah said.RGB reported profit growth of 418 percent yearly, to RM10.5 million ($2.3 million), for the quarter ended March 31st, 2023.In its 1Q23 results announcement, RGB outlined the improved performance, with its consolidated revenues rising by 197 percent year-on-year to RM95.2 million ($20.7 million). However, revenues were down 21 percent compared to the 4Q22.The Sales and Marketing segment revenues jumped 367 percent, to RM69 million ($15.0 million), with profit up 345 percent to RM10.4 million (US$2.3 million), mainly due to an increase in number of products sold.Even with solid growth this year, the managing director of RGB notes that as the company’s businesses are located in various countries in Asia, and that any changes in each country’s regulations and policies may have an impact on their operation. |
https://agbrief.com/news/malaysia/19/11/2021/kedah-ban-on-gambling-will-only-send-industry-underground-minister/ | Kedah ban on gambling will only send industry underground: Minister | -Malaysian Human Resource Minister Datuk Seri M. Saravanan has warned that the shutting down of licensed gambling outlets in Kedah will lead to job losses and force the industry to go underground. The Kedah state on Sunday announced it is set to effectively ban all licensed gambling operators by not renewing licenses for any operators. Kedah is one of three Malaysian states governed by Islamist party Parti Islam SeMalaysia (PAS).“My personal view is that our friends will lose their jobs,” said Saravanan during the 2022 Budget.“Also, we have had past experiences when samsu (cheap liquor) shops were made illegal – the operators went underground.“Thus, the impact if we ban licensed gaming outlets will not only result in loss of jobs, but illegal gambling dens will also start emerging.” |
https://agbrief.com/news/malaysia/27/11/2020/genting-malaysia-losses-at-us182-million-in-q3/ | Genting Malaysia losses at US$182 million in Q3 | -Genting Malaysia recorded total revenues of over RM1.4 billion (US$354 million) in the third quarter of 2020, representing a 46 percent decline year-on-year. The group registered a net loss of RM726 million (US$182 million).Genting Berhad Malaysia Announces Results (release) |
https://agbrief.com/news/malaysia/15/01/2021/genting-permanently-closes-u-k-s-southport-casino/ | Genting permanently closes UK’s Southport casino | -Genting Malaysia’s UK unit has permanently closed its casino in Southport in Northwest England, with 38 staff facing redundancy. The group has already closed casinos in Margate, Torquay and Bristol and has reduced its workforce in London, Glasgow, Edinburgh, Blackpool and Birmingham.Genting permanently closes U.K. casino (The Edge Markets) |
https://agbrief.com/news/malaysia/27/04/2023/gentings-sale-of-miami-property-to-net-967-million-for-the-company/ | Genting’s sale of Miami property to net $967 million for the company | -According to a filing with the Malaysian Stock Exchange, the group notes that the group had entered into a ‘conditional sale and purchase agreement’ for the property, owned by its subsidiary Resorts World Miami, totaling 15.47 acres or, 673,691 square feet.The sale encompasses four land parcels, three under freehold – for $1.2 billion, and one under leasehold, for $25 million.The group notes that it has obtained approval by the majority of shareholders for the land sale, initially acquired in a bid to get a casino license in Florida.The purchaser is a real estate development company named Smart City Miami, LLC, liked to the Terra Group, which is involved in projects through Miami Beach, Bay Harbor Islands and other projects in the state.Genting notes that the cash proceeds from the disposal of the land ‘are intended to be utilized for general corporate and investment purposes, including the funding of future investments as and when they arise’.Genting has been actively pursuing a casino property in New York, despite delays in the evaluation process. Genting’s $1.22 billion price tag on the sale compares to the $259 million it paid for the four parcels in 2011 (of which $13 million was paid in 2017).The group is expecting to make a gain of $967 million from the disposal.The sale is expected to be completed ‘by the third quarter of 2023’. |
https://agbrief.com/news/malaysia/05/07/2022/genting-malaysia-to-post-solid-recovery-in-2h22-hongleong/ | Genting Malaysia to post solid recovery in 2H22: Hong Leong | -The firm has a “buy” rating on the company and a share target price of MYR3.91. The company’s first-quarter results missed analysts’ expectations, mostly due to a mismatch between supply and demand, the bank said. The company was adding costs to open up the resort as demand fell due to the spread of the Omicron variant in the country.However, looking ahead, it said there are plenty of positive catalysts for the operator.Genting Malaysia is the country’s only casino operator, with a recently revamped resort in the Genting Highlands. Under the Genting Integrated Tourism Plan, which was launched in 2013. Genting spent MYR10.38 billion ($2.46 billion) to add more hotel rooms, expand its casino and add non-gaming attractions such as the SkyWorlds theme park, which opened in February.This resort will “anchor” the group’s recovery for the rest of FY22, HeongLeong said.It points to the fact that Malaysia is learning to live with Covid, while the borders are also reopening to international tourists.The Malaysian ringgit is also currently weak, which makes the country a relatively cheaper holiday destination. HongLeong said as of the end of March, Resorts World Genting had only opened about half of its hotel rooms, which total 10,500. It had an occupancy rate for those that were open of 88 percent in the first quarter. The company is also ramping up capacity at its casino and theme park from the second quarter.“From our ground checks, casino capacity has increased as the restriction on the number of players per table has been lifted, while the footfalls observed in the casino were also very encouraging,” the note said. “We believe visitations to RWG should improve meaningfully in 2Q22.” The firm expects international tourism to continue to pick up. By June 21st, Malaysia had already surpassed its target for the full year of two million incoming visitors, even though that was still only 17 percent of the pre-pandemic levels for the same period.SkyWorlds is also rolling out more attractions and the park allows Genting to tap into a larger market.“Prior to the opening of the theme park, the main attraction in RWG was its casino, which tends to attract, adult, non-Muslim crowds,” it said. “The opening of SkyWorlds allows RWG to attract a large and previously untapped Muslim market, which represents about 63 percent of Malaysia’s population.” The increased footfall from the park should have a positive spillover effect in other areas of the resort, it said. In 1Q22, Genting Malaysia said it had swung back to profit at the EBITDA level as revenue surged by three times following the lifting of Covid restrictions, but the results missed expectations.The company posted an EBITDA of RM414.4 million ($94.2 million), compared with a loss on that level of RM110.4 million a year earlier. The group’s net loss narrowed by 70 percent to RM147.9 million, while revenue surged to RM1.72 billion. The results missed expectations from J.P. Morgan for EBITDA of RM450 million and were weaker than the prior quarter. |
https://agbrief.com/news/malaysia/19/04/2022/genting-malaysia-1q22-ebitda-to-grow-26-jpm/ | Genting Malaysia 1Q22 EBITDA to grow 26%: JPM | -Higher visitation and spending are expected to drive Genting Malaysia’s performance growth in 1Q22, with EBITDA pegged to grow 26 percent to RM450 million ($105.8 million). According to analysts at J.P. Morgan, the company’s flagship property, Resorts World Genting saw 4.8 million visitors in 4Q21, and spend/pax of RM240. Driven by reopening momentum, the analysts expect visitation to grow 13 percent quarter-on-quarter to 5.4 million, whilst spending per patron will expand by 17 percent to RM280. JPM said that visitation growth is being driven by growing overnight options around RWG, and spending should also rise due to RWG’s more expensive spending outlets.The company has also been able to improve its cost structure through the use of technology to reduce costs during lockdown. |
https://agbrief.com/news/malaysia/22/03/2021/imperative-for-empire-to-secure-financing-soon-nomura/ | Imperative for Empire to secure financing soon: Nomura | -Empire Resorts must secure financing at attractive rates soon if it is to turn profitable and avoid the need for a further capital injection from Genting, Nomura said in a research note.The firm said it has built in associate losses of MYR238 million into its forecasts for Genting Malaysia this year due to its share of losses from Empire. The Malaysian company was forced to inject a further $20 million into the U.S. company on Friday.Despite the Empire losses, Nomura said it retains its buy on Genting Malaysia.“We believe investors will overlook near-term bumpy earnings, and are looking through to FY22F prospects, which look promising for Malaysia with the Skyworlds theme park scheduled to open (official guidance: mid-2021), vaccines expected to be widely available by end-2021 in Malaysia, the UK and the US (key markets), and start of some inbound tourism.” |
https://agbrief.com/news/malaysia/28/04/2021/genting-malaysia-theme-park-to-create-1500-jobs/ | Genting Malaysia theme park to create 1,500 jobs | -Genting Malaysia’s SkyWorlds outdoor theme park, which is scheduled to open later this year, is expected to create 1,500 jobs and provide a boost for the local economy.The delayed theme park is seen as a key plank in a grand overhaul of Resorts World Genting, Malaysia’s only integrated resort. The 10-year Genting Integrated Tourism Plan was launched in 2013.The operator has begun a recruitment drive for staff.Grand opening of Skyworlds to create 1,500 jobs (Malay Mail) |
https://agbrief.com/news/malaysia/06/12/2021/genting-restarts-star-cruises-operations-on-december-22/ | Genting restarts Star Cruises operations on December 22 | -Genting Cruise Lines has received approval to restart operation of its Star Cruises on December 22, 2021, starting with Star Pisces offering cruises from Penang.According to a statement from Genting, the Star Pisces will have five departures every week, offering one or two night round trip itineraries from Penang, including ‘Langkawi Escape’ and ‘Straits of Malacca’ cruise itinerary, which will be available to all Malaysian citizens and foreigners with valid Malaysian long-term visit passes. It will initially operate at reduced passenger capacity of 50 percent, and all guests and crew are required to be fully vaccinated in order to board, as well as presenting a negative test result prior to embarking. Genting Cruise Lines also noted that it is the first international cruise company in the world to successfully restart operations with Dream Cruises in Taiwan, Singapore and Hong Kong since July last year. “As part of Genting Cruise Lines, Star Cruises is excited to pioneer safe cruises in Malaysia and to work hand-in-hand with the ministries under the Malaysian government, together with PPC and PPSB to support the country’s National Recovery Plan (NRP), including Langkawi’s international tourism travel bubble pilot program.“We hope to call on more Malaysian destinations and to expand our itineraries with the inclusion of regional destinations like Phuket in the near future to spur the cruise tourism industry.” |
https://agbrief.com/news/malaysia/19/10/2020/no-new-casino-taxes-seen-in-malaysia/ | No new casino taxes seen in Malaysia | -The Malaysian government is unlikely to further hike casino taxes, as they are already among the highest in the region and the country’s only operator, Genting Malaysia, is suffering from the impact of Covid-19, RHB says.RHB doesn’t expect increase in casino duties/NFO tax (The Edge Markets) |
https://agbrief.com/news/malaysia/26/04/2023/resorts-world-gentings-recovery-depends-on-weather-conditions-says-maybank/ | Resorts World Genting’s recovery depends on weather conditions, says Maybank | -The report follows the devastating landslide in December 2022, nearby Genting Highlands, which claimed 31 lives, causing visitor arrivals to the resort to dip 10 percent in the last quarter of 2022 to 5.3 million.Maybank reported that the predicted decrease of visitor arrivals to RWG in January and February 2023 due to the rainy weather will have a significant impact on the estimated core net profit for the fiscal years of 2024 and 2025. It is estimated that the visitor arrivals will fall by 3 to 4 percent when compared to the 25.2 and 25.7 million visitors during the same period in the previous years.Maybank reported that visitor arrivals to the resort have been increasing since March 2023, with all 10,500 rooms now open and serviced due to increased availability of labor. Overnight stays have been particularly beneficial as a significant growth in RWG, gross gaming revenue has accompanied them.The analysts also point out that the results of the tender for a downstate New York casino license are now likely to be postponed until 1Q24, having been initially expected in 4Q23. Maybank pointed out that the bid could enable Resorts World New York City to introduce table games and increase the discounted cash flow-trading price.During its 1Q23 earnings call, Las Vegas Sands revealed that the request for applications for a potential new casino in New York has stalled. This comes after applicants submitted questions to the New York State Gaming Commission for clarification three months prior. |
https://agbrief.com/news/malaysia/25/09/2021/genting-malaysia-warns-about-online-survey-scam/ | Genting Malaysia warns about online survey scam | -Genting Malaysia is warning the public about an online survey scam said to be carried out in its name in conjunction with the group’s 25th anniversary.In a statement on its website, the operator said that Genting is “not involved or associated in any way with this online survey. Please do not click on the link and refrain from circulating it.”Genting, which operates the Resorts World Genting property in Malaysia’s Genting Highlands, didn’t give any details on what the survey scam was about.Asia’s major gaming brands have been frequently targeted by scams that seek to capitalize on their names to run online gambling. Last year, Macau’s Galaxy Entertainment was forced to put out a statement distancing itself from sites using its name and brand. Earlier this year, the Philippines’ Okada Manila warned the public of online websites using its name. |
https://agbrief.com/news/malaysia/27/11/2020/local-vips-buoy-gentings-malaysia-operations/ | Local VIPs buoy Genting’s Malaysia operations | -Behind the sea of red in Genting Malaysia’s Q3 results, analysts found reason for cheer in the performance of its domestic operations, which generated a positive EBITDA of RM541 million ($133 million) in the quarter.TA Securities analyst Tam Kan Meng said company executives on a conference call attributed the strength at home to support from local VIPs, who have been unable to travel overseas to gamble due to border closures. Total visitation to the hilltop resort returned to 66 percent of pre-Covid measures, with gaming revenue back to 74 percent. VIP players made up 64 percent of the total in the period. Leisure and hospitality revenue is down 34.2 percent year-on-year to RM1.2 billion, but that performance is “satisfactory,” says Tam as the group has regained more than 60 percent of its prior levels, even with reduced capacity.Still, TA Securities is cutting its forecasts for Genting Malaysia next year and says it expects the operating environment in the first half to be similar to Q3. It has cut its earnings projections for 2021 by 30.4 percent to RM499 million and for 2022 by 1.8 percent to RM1.4 billion. Analysts at CGS-CIMB were more upbeat than TA Securities, noting that they expect a recovery to be imminent and subsequently raised their forecasts.For 2021, they raised their core earnings per share forecast by 3 percent and for 2022 by 6 percent, saying they are factoring in lower operating expenditure. “We see FY21F net profit recovering to RM563 million, then doubling in FY22F, as visitors fully return (partly bolstered by Genting SkyWorlds’s mid-2021 opening),” they noted. Management have confirmed that they expect the outdoor theme park to open in the middle of next year. The much anticipated attraction was one of the central planks of the revamp of the resort. It has been delayed in part by a dispute with former partner 20th Century Fox. Nomura analysts also said they were pleasantly surprised with the performance in Malaysia.“What really struck us [positively] was the revenue/margins generated by the Malaysian resort, with revenue at 66 percent and EBITDA at 79 percent of year-ago levels, and EBITDA margins of 36 percent in Malaysia,” they said.However, TA Securities reports management as saying that margin level is unlikely to be sustained in 2021 due to additional costs from running the theme park.Genting Malaysia itself is maintaining a cautious outlook, warning that ongoing measures taken to control the pandemic will continue to have an impact on its business.The government announced on Nov. 4 that several more states have been added to its Conditional Movement Control Order list and that the order had been extended to December 6 in the Kuala Lumpur area. Prior to the pandemic, the Genting Highlands resort had about 50,000 visitors a day. That number is currently at about 15,000 a day due to the latest clampdown.In the U.K., the group’s casinos were forced to close their doors again on November 4th, while its New York properties – Resorts World New York City and Resorts World Catskills were closed throughout much of Q3, reopening only on Sept. 9th. |
https://agbrief.com/news/malaysia/18/01/2021/genting-malaysia-earnings-forecasts-cut-at-kenanga-on-lockdowns/ | Genting Malaysia earnings forecasts cut at Kenanga on lockdowns | -Genting Malaysia’s 2021 earnings estimates have been cut by 22 percent by analysts at Kenanga Research due to more Covid-19 lockdowns in Malaysia and the U.K.Kenanga lowers earnings forecasts for GentingM on more lockdowns (The Star) |
https://agbrief.com/news/malaysia/03/01/2022/genting-malaysia-to-return-to-profitability-in-2022-rhb-investment-bank/ | Genting Malaysia to return to profitability in 2022: RHB Investment Bank | -RHB Investment Bank says it expects Genting and Genting Malaysia to return to profitability in 2022, despite the potential downside risk from Omicron on earnings recovery. “Many countries are now better equipped and nimble in handling the pandemic. Coupled with the massive cost rationalisation efforts undertaken previously by the casino operators, these should partially cushion the impact. Both the casino operators will resume recovering after the Covid-19 situation stabilises,” said the brokerage, in a report picked up by The Edge Markets. Similar to a note by Hong Leong Investment Bank (HLIB) Research last week, the investment bank has maintained its “overweight” rating of the Malaysian gaming sector, with Genting as its top pick.RHB said this is “due to its attractive 6.2x EV/EBITDA vs the regional peer average of c.13x, which provides investors a cheaper alternative to position for the tourism recovery play angle”.RHB said further upside could come from a stronger-than-expected contribution from Genting’s Las Vegas resort, which is in the early stages of ramping up business. |
https://agbrief.com/news/malaysia/30/09/2021/resorts-world-genting-reopens-with-limited-capacity-from-sept-30/ | Resorts World Genting reopens with limited capacity from Sept. 30 | -Genting Malaysia’s Resorts World Genting property has reopened on a limited basis from Sept. 30th.According to a message on its website, the resort’s employees are now fully vaccinated and some of the facilities will also only be available to those who have received both shots. It didn’t specify exactly which amenities are open.The resort, in the Genting Highlands, will only be accessible to guests within its home state of Pahang. The government this week decided against a plan to reopen some of Malaysia’s key tourism resorts for interstate visitors. Malaysia is currently about 80 percent vaccinated and the government wants to see a 90 percent rate before further easing.Resorts World Genting has been closed since June 1st to fight the spread of Covid. The casino had been closed a week prior to the full lockdown. |
https://agbrief.com/news/malaysia/14/07/2022/genting-malaysia-warns-of-imitation-online-websites/ | Genting Malaysia warns of imitation online websites | -In an advisory on the Resorts World Genting website, the company said it is not associated with these websites in any way.Genting Malaysia is Malaysia’s monopoly casino operator and also owns properties in the U.K., U.S., Bahamas and Egypt. The group has no online gambling presence in Asia, but does offer online casinos and sportsbooks through Gentingcasino.com, which is licensed in Alderney.Earlier this year, Resorts World New York also launched ResortsWorldBET, a sports betting product for the New York mobile market. |
https://agbrief.com/news/malaysia/10/12/2020/malaysia-dubai-seen-as-potential-online-gambling-bases/ | Malaysia, Dubai seen as potential online gambling bases | -Malaysia and Dubai are both being viewed as potential bases for online gambling operations, as an alternative to the Philippines, where the cost of doing business has risen to a level considered as unacceptable by many operators. Speaking on an Asia Gaming Brief webinar, Cherry Interactive General Manager Danny Too said both jurisdictions had emerged as potential hosts.“You can set up finance, operations, and can even do online marketing out of the Malaysian office, but the key thing is that you get the permission of the federal government,” he told the webinar. “You can get a place to work and a license from one of the states but you need to go through the central government to go ahead. From the government point of view it’s just a BPO and as long as the games are not being offered in Malaysia, the government is happy to bring in these operators.”The federal government in Malaysia has been prompted to act in an effort to stamp out rampant online gambling and to collect “billions of U.S. dollars,” in lost revenue to illegal sources, he said. The economic hit from the Covid-19 pandemic has given further impetus to the process.“Malaysia is a very, very interesting proposition,” he said. “Authorities have been talking about it, but during the pandemic they have upped the ante and want to get companies in. I have been speaking with 5 to 6 operators who are interested.”However, the government wants to ensure that the companies are legitimate and not scammers and will be able to pay both their taxes and employees. They will also be banned from offering services to Malaysia’s Muslim population, Too said, adding that actual regulation is still some way off. Live dealer, which is one of the fastest-growing online verticals, will not be permitted in the country, he added.Dubai is taking a similar stance and is being considered by some Chinese operators who are keen to diversify their portfolio away from China and instead target the huge and growing Indian market.The city is home to a large expatriate workforce, in particular from India, providing a potential workforce with strong cultural affiliations with the target market. Too said that to date, Dubai has taken the same stance as Malaysia when it comes to live dealer operations, not permitting any physical presence of table set ups on its soil. Asia Gaming Brief will be delving deeper in alternative i-gaming jurisdictions and some of the themes discussed on the webinar in an upcoming white paper to be distributed to subscribers. |
https://agbrief.com/news/malaysia/22/04/2021/malaysia-blocks-2195-online-gambling-sites-terminates-phone-lines/ | Malaysia blocks 2,195 online gambling sites, terminates phone lines | -The Malaysian Communications and Multimedia Commission said it has blocked 2,195 online gambling websites and terminated 19,765 telephone lines for sending spam SMS messages promoting gambling.The figures are up to March this year. The Malaysian government has been on campaign to crackdown on illegal gambling in the country.MCMC statement |
https://agbrief.com/news/malaysia/21/04/2021/gen-malaysia-seen-posting-loss-due-to-covid-restrictions-maybank/ | Gen. Malaysia seen posting loss due to Covid restrictions: Maybank | -Genting Malaysia is now expected to report a loss this year due to the ongoing disruptions from Covid, but the earnings recovery momentum is intact, Maybank Research said in a note maintaining its “buy” rating and increasing its target share price.The firm forecasts a core net loss for the year of MYR384.8 million ($93.3 million), compared with its estimate for a profit of MYR137.9 million previously. It has increased the share price target by 8 percent by MYR3.43.“With the recent surge in new COVID-19 cases in Malaysia, we do not believe that the inter-state travel ban in Malaysia will be lifted soon,” the note said, explaining that 77 percent of FY20A Resorts World Genting visitors were day-trippers, with the great majority from the neighbouring state of Selangor and Federal Territory of Kuala Lumpur.
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https://agbrief.com/news/malaysia/21/01/2021/biden-may-be-positive-for-genting-tribal-investment-maybank/ | Biden may be positive for Genting tribal investment: Maybank | -The pro-native American stance of incoming U.S. President Joe Biden may be positive for Genting Malaysia’s investment in a Mashpee Wampanoag casino project, Maybank wrote in a research note.If their reservation land continues to be held in trust by the U.S. Department of Interior and they are allowed to resume construction of First Light Resort & Casino, we gather GENM may write back the promissory notes it impaired in 2018, the firm said.If this happens, Maybank said it would lift its sum-of-the-parts based target price by 12 percent and its forecast for 2022 earnings per share by 17 percent.Genting took an impairment charge of MYR1.8 billion related to its investment in promissory notes by the tribe. Genting had been appointed to run the casino for seven years for 30 percent of EBIT. |
https://agbrief.com/news/malaysia/08/11/2021/genting-carrying-out-technical-rehearsals-on-theme-park-opening-seen-next-month/ | Genting carrying out technical rehearsals on theme park, opening seen next month | -Genting Malaysia has begun technical rehearsals at its SkyWorlds outdoor theme park and the opening is expected to take place next month, according to a local media report.In response to inquiries from, The Edge, a Genting spokesperson said the rides were currently open to employees and selected guests. The long-delayed theme park is seen as a key draw in the Genting Integrated Tourism Plan. The opening of the attraction will mark the culmination of the revamp of the Genting Highlands Resort, which began in 2013.“GENM itself expects Genting SkyWorlds to drive RWG visitor arrivals to 30 million in the long term while we are a tad more conservative at 26 million to 27 million per annum (pre-Covid-19 high: 24 million),” the report cited MayBank analyst Yin Shao Yang as saying. Assuming RM150 average mass market gaming revenue per patron and 40% EBITDA margin, he said, the 2 million to 3 million extra RWG visitors per annum relative to the pre-Covid-19 high will accrete RM120 million to RM180 million to EBITDA per annum. In a recent interview with AGB, Nomura head of Malaysia equity research, Tushar Mohata, said he expected the opening of the theme park to coincide with the school holidays in Malaysia to maximize visitation. |
https://agbrief.com/news/malaysia/08/03/2023/two-of-10-richest-billionaires-in-malaysia-from-gaming-industry/ | Two of 10 richest billionaires in Malaysia from gaming industry | -Before Forbes released its annual list of ‘Malaysia’s 50 Richest’ this year, local media reported that two of ten richest billionaires in Malaysia have businesses deeply related to gaming.According to Prestige, Dr Chen Lip Keong, owner of NagaCorp and Karambunai was classified as the 6th richest individual in the nation, with a net worth of $2.8 billion.The entrepreneur won a contract to operate a casino in Phnom Penh in 1994. That casino, NagaWorld, eventually built Chen’s fortune. NagaWorld is Cambodia’s first casino and has a license to operate until 2065. It has a guaranteed monopoly within a 200-kilometer radius of Phnom Penh until 2045, effectively meaning that it will be the only casino company in the Cambodian capital until the period expires.NagaWorld is the largest casino resort in the Mekong region and has played an important role in Cambodia’s tourism economy.Its parent company, NagaCorp, was listed on the Hong Kong Stock Exchange in 2006, becoming the first casino group with operations in Cambodia to do so.Malaysia’s 7th richest person is the well-known Genting Group boss Lim Kok Thay.Lim is the chairman and CEO of Genting, a Malaysian company known for its businesses and luxury brands in the leisure and hospitality sector. He was also the chairman and CEO of Genting Hong Kong, Asia’s largest cruise operator, until his resignation in January of last year after the company filed for liquidation because of losses caused by the collapse of its shipbuilding arm.However, Lim remained on Forbes’ list of the richest Malaysian billionaires, with a net worth of $2.35 billion in 2022.The group comprises Genting and its listed and unlisted companies Genting Malaysia, Genting Plantations and Genting Singapore, Genting Energy and Resorts World Las Vegas. Genting Singapore operates the famous Resorts World Sentosa, one of only two integrated resorts licensed to operate in the city. |
https://agbrief.com/news/malaysia/09/11/2020/resorts-world-genting-open-despite-extension-of-movement-controls/ | Resorts World Genting open despite extension of movement controls | -Resorts World Genting say it remains open despite the extension of Conditional Movement Control Order until Dec. 6. The resort says anyone affected can either change dates or request a refund.Resorts World Genting open despite extension of movement controls (Company filing) |
https://agbrief.com/news/malaysia/24/02/2022/genting-malaysia-returns-to-4q21-profit-announces-special-dividend/ | Genting Malaysia returns to 4Q21 profit, announces special dividend | -Genting Malaysia returned to profit in 4Q21 as revenue surged following easing Covid restrictions and said it was paying a special dividend to shareholders.The Malaysian operator reported net profit of RM124 million ($29.5 million) compared with a loss of RM285.1 million in the same quarter a year earlier. There was an 81 percent jump in revenue in the quarter to RM1.88 billion. Adjusted EBITDA was RM738.1 million, more than four times the level reported in the same quarter last year. In a filing with the stock exchange, Genting said it was “cautiously optimistic” about the near-term prospects for the leisure and hospitality industry in the markets in which it operates as Covid restrictions are lifted. Genting Malaysia operates Resorts World Genting, the country’s only casino. It also has operations in the U.K.; Crockfords Casino in Egypt; Resorts World Bimini in the Bahamas, and Resorts World New York City, while its associate company operates Resorts World Catskills. Genting said it will pay a special dividend of 9 sen per ordinary share on March 31. It’s the second Asian operator this week to announce a payout to shareholders after Macau’s Galaxy Entertainment. For the year as a whole, Genting Malaysia remained in the red, though its loss narrowed by 55 percent to RM1.051 billion. Revenue for the year was down 8 percent. Resorts World Genting reopened on September 30 and the company said it had seen higher business volumes, with revenue up 49 percent to FM961.9 million in 4Q21. The group also recently opened its SkyWorld outdoor theme park, which was a central plank in a major revamp of the property. The attraction is expected to drive visitation to the resort and add to the bottom line.In the U.K. and Egypt, revenue in the quarter surged more than three times the level in 2020 to RM433.2 million as the operations were no longer impacted by the intermittent Covid closures that affected performance in 2020. Resorts World New York City saw gross gambling revenue return to pre-pandemic levels, with overall U.S. and Bahamas revenue up 43 percent to RM350.7 million. Empire Resorts also exceeded pre-pandemic gross gambling revenue, Genting said. Genting is planning to expand its presence in New York state and said its Resorts World Hudson Valley video gaming facility is likely to open this summer. The group also plans to scale up operations in New York following a $400 million expansion to turn the property into an integrated resort facility. Genting has indicated that it’s positioning itself ahead of the possible issuance of full casino licenses in downstate New York.Empire will also begin mobile sports betting operations in New York. |
https://agbrief.com/news/malaysia/18/11/2020/sarawak-police-claim-success-in-busting-online-gambling/ | Sarawak police claim success in busting online gambling | -The Sarawak Police Contingent has been declared by their colleagues as being particularly proficient in investigating and busting illegal online gambling rings.Sarawak cops one of the best at tackling online gambling (Borneo Post) |
https://agbrief.com/news/malaysia/17/02/2021/genting-reopens-malaysia-properties/ | Genting reopens Malaysia properties | -Genting Malaysia announced that Resorts World Genting and Resorts World Awana have resumed business after the group temporarily suspended operations at the resorts following the implementation of the Movement Control Order from January 22 to February 4. Resorts World Kijal and Resorts World Langkawi expected to resume operations on February 19.Genting Malaysia’s hilltop casino resumes operation today (The Edge Markets) |
https://agbrief.com/news/malaysia/14/10/2020/resorts-world-genting-open-but-monitoring-latest-outbreak/ | Resorts World Genting open, but monitoring latest outbreak | -Resorts World Genting says it plans to remain open for now, but is closely monitoring the situation after the government imposed conditional movement control orders on Selangor, Kuala Lumpur and Putrajaya due to Covid-19. The areas are under restrictions from Oct. 14 to 27.Resorts World Genting company advisory |
https://agbrief.com/news/malaysia/22/12/2020/malaysia-dubai-eyed-as-potential-igaming-hosts/ | Malaysia, Dubai eyed as potential igaming hosts | -Speaking on an Asia Gaming Brief’s “Life After POGOs” webinar, Cherry Interactive General Manager Danny Too said both jurisdictions had emerged as potential hosts.“You can set up finance, operations, and can even do online marketing out of the Malaysian office, but the key thing is that you get the permission of the federal government,” he told the webinar. “You can get a place to work and a license from one of the states but you need to go through the central government to go ahead. From the government point of view it’s just a BPO and as long as the games are not being offered in Malaysia, the government is happy to bring in these operators.”The federal government in Malaysia has been prompted to act in an effort to stamp out rampant online gambling and to collect “billions of U.S. dollars,” in lost revenue to illegal sources, he said. The economic hit from the Covid-19 pandemic has given further impetus to the process.“Malaysia is a very, very interesting proposition,” he said. “Authorities have been talking about it, but during the pandemic they have upped the ante and want to get companies in. I have been speaking with 5 to 6 operators who are interested.”However, the government wants to ensure that the companies are legitimate and not scammers and will be able to pay both their taxes and employees. They will also be banned from offering services to Malaysia’s Muslim population, Too said, adding that actual regulation is still some way off. Live dealer, which is one of the fastest-growing online verticals, will not be permitted in the country, he added.Malaysia has frequently announced high-profile crackdowns on illegal online gambling, with a campaign launched in 2017 touted to be the biggest ever. However, the action has met with little success and Deputy Minister of Communications and Multimedia, Datuk Zahidi Zainal Abidin recently told local media that online gambling had surged under Covid-19.He publicly aired the idea that it may be better to regulate and collect revenue.The government hopes to appoint an official government body to monitor, regulate, and tax the appropriate parties, he told national television channel TV3.“Malaysia also rates favourably to its Asian peers when it comes to the cost of doing business.“He stressed that Muslim Malays would not be permitted to gamble, but acknowledged the country has a diverse population, with a large number of ethnic Chinese who like to gamble. The Philippine Amusement and Gaming Corp (PAGCOR) in July informed the government that Malaysia was offering incentives to its Philippine Offshore Gaming Operator licensees to relocate there.Too says the country is well-prepared to host online gaming companies. It has a well-educated, multilingual population, with many speaking both Chinese and Indian languages.Malaysia also rates favourably to its Asian peers when it comes to the cost of doing business. A recent KPMG survey placed it at number four in the region when it comes to competitiveness. The country outperformed when it comes to hourly compensation costs, real estate costs and corporate tax rates.In August, the government announced an RM21 billion ($5.1 billion) action plan to upgrade its telecommunications infrastructure to ease the rollout of 5G. Under the first phase of the so-called JENDELA plan as many as 7.5 million premises will be enabled with gigabit speed fixed-line broadband; expanding 4G mobile coverage from 91.8 percent to 96.8 percent in populated areas. It will also upgrade mobile broadband speed from 25Mbps to 35Mbps and retirem of 3G networks by the end of 2021.Potential locations in the country include a giant urban development known as Johor Medini.Medini is a 2,300 acres urban township development planned for a population of 450,000 by 2030. It’s the country’s largest single urban development and is expected to be a smart business hub. Dubai is also taking a similar approach to Malaysia when it comes to hosting online gambling operators and has a significant advantage in its proximity to India, one of the largest potential markets in the region. Too said some major Chinese operators, who are keen to diversify their portfolio away from China are actively looking at the market.The city is home to a large expatriate workforce, in particular from India, providing a potential workforce with strong cultural affiliations with the target market. Too said that to date, Dubai has taken the same stance as Malaysia when it comes to live dealer operations, not permitting any physical presence of table set ups on its soil. However, it has not been as emphatic as Malaysia and may reconsider its stance in the future.Aside from its workforce, another major advantage of Dubai is its connectivity. It’s an advanced city and a global aviation hub linking east and west. The city, part of the United Arab Emirates, has been hit by the pandemic due to the loss of travel and tourism, which accounts for about 12 percent of its gross domestic product. Ratings agency, S&P Global doesn’t expect Dubai to recover to pre-Covid 19 levels until 2023 suggesting it may be open to new business opportunities.Although not a cheap destination, Covid-19 has reportedly brung costs down and a poll by Resonance Consultancy ranked Dubai as the sixth-best city globally to live. The rankings consider 22 factors, such as culinary experiences, museums, and sights and landmarks each city offers, to the number of Global 500 corporations, direct flight connections and mentions each city has on Instagram.On the webinar, Too also highlighted Myanmar as a key destination for many of the companies that fled Cambodia after the ban on online gambling there and as a home for some of the existing POGOs.The country is already home to some new-town mega projects, backed by Chinese money, that are home to multiple gambling operations. These are in border states, falling largely outside of the control of the central government and run by local armies, which hand out online gambling licenses.Recently, the government itself passed a bill legalising casinos in the country in the hope of attracting investment to boost its tourism industry. “Watch out for Myanmar, it’s going to be an interesting place to be,” he said. |
https://agbrief.com/news/malaysia/13/01/2021/resorts-world-genting-to-cut-capacity-as-covid-cases-rise/ | Resorts World Genting to cut capacity as Covid cases rise | -Resorts World Genting says its reducing its capacity, cutting its operating hours and closing some facilities due to anticipated lower visitor arrivals amongst Malaysia’s latest round of restrictions to curb rising Covid-19 cases.Temporary changes to offerings at Resorts World Genting (Company filing) |
https://agbrief.com/news/malaysia/25/07/2023/maybank-says-boost-in-malaysian-ringgit-bodes-well-for-genting-share-price/ | Maybank says boost in Malaysian Ringgit bodes well for Genting share price | -Cited by The Star, the analysts note that foreign nationals tend to buy Genting shares when the ringgit appreciates, selling when the reverse happens.The analysts are of the viewpoint that by the end of 2024, the ringer would recover to 4.15 per US dollar, expecting less interest-rate increases by the US Fed after this year.‘While we continue to like it fundamentally as a post-Covid-19 recovery play, more than a decade of historical data tells us that the recovering ringgit is a share price catalyst,’ note the analysts, as cited by the publication.Maybank maintained its “buy” rating on Genting, however it slightly lowered its target price due to slower-than-expected recovery in both Genting Berhad and Genting Singapore.The group has cut its earnings-per-share estimates by 24 percent for 2023, 8 percent for 2024 and 5 percent for 2025.However, the group does expect earnings to recover to 2019 levels by 2025.‘We opine that our investment thesis on Genting as a post-Covid-19 recovery play still holds,’note the analysts. |
https://agbrief.com/news/malaysia/21/10/2020/malaysian-govt-losing-myr3b-a-year-to-illegal-syndicates/ | Malaysian government losing US$725 million a year to illegal syndicates | -The Malaysian government is losing up to MYR3 billion (US$725 million) a year in revenue as illegal gambling syndicates take an ever growing amount of business away from legal number forecast operators.Malaysia loses S$1b a year from illegal gambling syndicates (Straits Times) |
https://agbrief.com/news/malaysia/19/10/2020/online-gambling-suspect-slips-malaysia-police-custody/ | Online gambling suspect slips Malaysia police custody | -Police have launched a manhunt for a suspect in an online gambling syndicate who escaped custody by climbing over the fence at the Malaysian Anti-Corruption Commission headquarters. Meanwhile, a total of 21 people believed to be involved in illegal lottery, and online gambling were arrested by the Malaysian police in a raid at a condominium in Mont Kiara.Macau Scam suspect sought (Bernama)Cops arrest 21 for illegal lottery, online gambling in Mont Kiara (Malay Mail) |
https://agbrief.com/news/malaysia/21/01/2021/resorts-world-genting-to-close-until-feb-4-on-covid/ | Resorts World Genting to close until February 4 on Covid | -Genting Malaysia’s Resorts World Genting said it will close up until February 4 due to movement control orders to stop the spread of Covid-19.Resorts World temporary closure (Company notice) |
https://agbrief.com/news/malaysia/15/12/2022/genting-malaysia-prime-beneficiary-of-tourism-recovery-brokerage/ | Genting Malaysia prime beneficiary of tourism recovery: brokerage | -“Under the new administration, the tourism segment may benefit as the government capitalises on the sector as a lever to support the domestic currency and economy,” Hong Leong Investment Bank noted.The brokerage believes that “visitations to RWG have the potential to scale beyond pre-pandemic level given the capacity increase and the more diverse crowd it attracts due to the addition of its theme park.”Hong Leong Investment Bank’s report highlighted the upcoming opening of Resorts World Hudson Valley.“The opening of RWHV is expected to contribute positively to Empire’s earnings in the coming quarters given that it’s a low capital expenditure venture resulting in only marginal incremental depreciation expense post opening.”Hong Leong Investment Bank expects “the group will see a much better FY23 due to the reopening of the 21% remaining hotel room inventory in RWG and SkyWorld capacity increase with two additional rides to bring a total of 20 rides.”For a review of Genting’s path this year and what lies ahead, check out Daniel Cheng’s half-full glass toast. |
https://agbrief.com/news/malaysia/20/10/2020/chinese-arrested-for-operating-online-gambling-in-malaysia/ | Chinese arrested for operating online gambling in Malaysia | -Forty-eight China nationals suspected of operating online gambling from three condominium units in Kuala Lumpur were arrested on October 16.Police nab 48 China nationals operating online gambling from condo in Ampang (Malay Mail) |