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.


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.


-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)


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.


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)


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)


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


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.


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)


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.


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)


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)


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)


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.


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)


Hyatt hotel planned for Resorts World NYC

-Hyatt Hotels and Genting Americas are planning a new 400-room, four-star hotel to be located at Resorts World Casino New York City. The hotel is scheduled to open in 2021.Hyatt Regency JFK at Resorts World New York (Hospitality Net)


Genting’s U.S. GGR tracks higher in 3-months to May: Nomura

-Three-month GGR at Genting Malaysia’s Resorts World New York City was $233 million, up 2 percent year-on-year and 14 percent sequentially. In May, GGR was flat month-on-month, but down 3 percent from the prior year.Nomura said the number of operational video gaming machines in May was 6,220, a decline of 60 machines month-on-month.Resorts World Catskills, which is 49 percent-owned by Genting Malaysia, saw a three-month GGR for the period of $55 million, up 18 percent from last year and 8 percent sequentially. May alone was down 6 percent from April, but up 2 percent from 2021. Monthly data isn’t available for Resorts World Las Vegas, which is held directly by the parent company Genting Bhd. Nomura takes data from the Las Vegas Strip as a proxy GGR there was $2.1 billion, up 26 percent year on year and 14 percent higher sequentially.Nomura has a buy rating on Genting Malaysia and is neutral on the parent company.


RGB posts 2Q profit, sees some recovery in gaming markets

-Malaysian supplier, RGB International, swung to a profit in 2Q21 and said it sees some signs of recovery in gaming markets, which will lead to a better performance for the year.Total revenue for the period rose 284 percent to MYR55.47 million ($13.3 million). The group posted a profit of MYR1.19 million, compared with a loss of MYR14.42 million a year earlier. The group’s technical support and management division showed the biggest improvement with revenue rising to MYR16.9 million from MYR1.49 million a year earlier. The sales and marketing division saw revenue increase 198 percent to MYR38.1 million. RGB said it sees conditions improving, however it expects markets to remain volatile during the second half of the year as vaccine rollouts continue.“The group is embarking o a new avenue by optimizing its existing resources to increase revenue during this unprecedented period and at the same time, conducting test simulations on the remote gaming solutions for land-based casinos,” it said. In a Supplier Special report for Asia Gaming Brief’s August magazine, RGB noted that the company is working on unique omni channel solutions.“We also offer a truly unique online gaming offering which allows players to play real physical EGMs remotely through the use of streamed video, thus increasing machine utilization and profitability,” it said. “This is not a reproduction of land-based games but an actual real time game play on an actual machine that is equipped with a camera, played via an engaging user interface.”


Genting Malaysia EBITDA/revenue seen at pre-Covid levels by 2022

-Genting Malaysia’s EBITDA is likely to return to its pre-pandemic levels by 2022 and reach 60 percent this year, Standard & Poor’s said.It said the 2021 level would be exceeded in 2022 with travel restrictions easing towards end-2021 as the pick-up in pent-up demand should underpin the resorts and casino operator’s operational recovery.S&P: Genting Malaysia EBITDA and revenue to reach pre-pandemic levels by 2022 (Malay Mail)


Genting downgraded by S&P as recovery lags

-Genting Group’s credit ratings have been downgraded by S&P Global due to the slower-than-expected recovery in Malaysia, with earnings not now seen recovering until 2023. The credit ratings agency says it has cut its long-term issuer ratings to BBB- from BBB, with an equivalent cut for Genting Malaysia, the operator of Resorts World Genting.In the U.S., the ratings for Resorts World Las Vegas and Genting New York decline to BBB- from BB+.The stronger-than-forecast ramp up in Las Vegas and strong rebound in the U.S. overall are not sufficient to offset the continuing impact of the virus in Malaysia, the firm said.Resorts World Genting has been closed since May. Given the ongoing uncertainty surrounding the reopening, S&P doesn’t expect EBITDA from group companies to get back to pre-pandemic levels until 2023, a year later than originally anticipated.The delayed recovery, coupled with high debt levels, were not enough to support the company’s credit rating. Group debt to EBITDA is expected to remain at 6.0x to 6.2x in 2021 and 3.1x and 3.3x in 2023. The ratio of funds from operations to debt is expected to be 19-21 percent in 2022 and 26-28 percent in 2023. These are beyond the threshold for the BBB- rating, it said.However, S&P maintains a stable outlook on the group on expectations that its credit quality will stabilise. The company is coming to the end of a major investment cycle, which has included a land purchase for an expansion of Resorts World Sentosa in Singapore, investment in a theme park and other assets in Malaysia and expansion in New York. S&P states that the ratings on the group’s units are tied to that of the parent company.“GENT will provide strong long-term support to these group companies, even under stressed conditions,” it said. “This is mainly due to their strategic importance to the group’s branding and operations.”


Maybank lukewarm on Genting’s Macau bid, maintains buy call

-Titled “Second time lucky in Macau?” MayBank’s report highlights that the company failed to secure a casino concession and, 20 years after, is once again in the game.The company has filed for Macau concession under GMM Ltd, which is not a stock market listed entity.“We are lukewarm on this development as China’s zero COVID policy has hit Macau hard relative to GENM’s existing operations in Malaysia and the west,” the brokerage noted as one of the prime reasons for not being optimistic about Genting being selected for bid. Macau gaming revenues have also been subdued by China’s zero COVID policy and are unlikely to return to pre-COVID levels as Macau is now a kind of junket-less journey. Junkets contributed 40 percent of Macau GGR.Yet a strong mass market recovery could be staged if China lifted its zero COVID policy. The brokerage view may change if China lifted its zero COVID policy, the report read.  Seven concessionaires have submitted bids for a new gaming concession for Macau, including the six incumbent operators – SJM Holdings, Wynn Macau, Galaxy Entertainment, Sands China, MGM China, and Melco Resorts -, whereas the seventh entrant is Genting Group.The new regime envisages six concessions, each running for 10 years. Should GMM be successful, one of the existing concessionaires will lose their concession, which is a low probability scenario.If Genting wins the bid, as per the stipulated terms and conditions for operating gaming activities in Macau vide the new concession, the successful bidder needs share capital of a sizeable MOP5 billion ($618.5 million), as well the management must be delegated to a permanent resident of Macau, and the management representative of the company shall hold 15 percent of the shares of the concessionaire.In the above scenario, GMM Ltd, the company which has bid on behalf of Genting Group having links with Genting Group, is not 100 percent owned by Genting Group, the brokerage report noted.In turn, Maybank is rather positive on Genting’s earnings estimates and maintains a BUY call for shares, keeping the target price of MYR3.27 per share intact, as per the brokerage’s previous report.The brokerage gives BUY calls expecting the return to be above 10 percent in the next 12 months, whereas the HOLD call is given expecting the return between 0 percent to 10 percent in the next 12 months, the brokerage report read.Interestingly, in a span of three years between Sep 2019 to Sep 2022, the brokerage gave 21 calls, of which five were to HOLD, whereas 16 were to BUY.


Genting Malaysia subscribes up to US$20 million for Empire Resorts

-Genting Malaysia’s indirect wholly-owned subsidiary, Genting ER II LLC has entered into a subscription agreement for up to US$20 million of additional stocks of Empire Resorts, according to a company filing.Genting Malaysia to subscribe up to US$20mil of Empire Resorts shares (The Star)


RGB: The value of preventative care

-A proper electronic gaming machine (EGM) and gaming equipment Preventive Maintenance program protects and prolongs the value of a gaming property’s capital investments. When well executed, a proper Preventive Maintenance program maximizes available play time on the various available offerings by way of minimizing unscheduled downtimes on the EGMs and gaming equipment. Not only do unexpected downtimes cost gaming properties loss of income, they will also create a negative perception of poor service quality over what should have been an otherwise enjoyable and satisfactory experience.RGB, through our Engineering Services arm, provides quality Preventive Maintenance services for EGMs and gaming equipment from all major gaming manufacturers. The Preventive Maintenance program that we offer, can and will be distinctly designed based on the unique operational requirements of individual gaming properties.RGB’s Engineering team is staffed by qualified engineers and has more than 34 years of experience in rendering gaming technical services, executing successful turn-key projects for multiple integrated resorts and casinos, as well as providing casino system maintenance services and consultation in over 10 countries across Asia. We also offer extensive technical repair capabilities which incorporate module and board level repairs, including BGA circuit replacements, refurbishment of power supply units, repairs of flat panel displays and refurbishment of ticket printers as well as note validators.


Asiabet33 becomes the official Asia partner for Fulham FC

-Asiabet33 will be the official Asian betting partner for the U.K.’s Fulham Football Club for the remainder of the 2021/2022 season. Established in 2017, Asiabet33 is a pioneer for gaming technology in Asia. The organisation’s technological framework has been adopted by various industry players in the market across the continent. Asiabet33 and its subsidiaries currently operate in Malaysia, Singapore, Thailand, Indonesia, and Japan with expansion plans in place for the rest of Asia.“Asiabet33 is thrilled to be partnered with Fulham Football Club’s to service the Asian market. This partnership is a monumental opportunity for us to grow from strength to strength as a prominent player in the Asian gaming technology industry,” said Leo Li, Managing Director and Co-Founder of Asiabet33. “Working with Fulham provides us with the necessary resources to hone the skill sets of our team members and deliver the best possible experience for our clients.”Jon Don-Carolis, Fulham FC Sales Director, said: “We are delighted to have Asiabet33 on board as our betting partner in the Asian region and look forward to working with them further to develop our global fanbase.”


Genting U.S. operations strong, to be pillar for earnings: Nomura

-Genting Group’s U.S. operations are seeing strong momentum after reopening and will provide a key pillar for earnings, analysts at Nomura wrote.The firm reiterates its “buy” rating on Genting Malaysia with a share price of MYR3.50 and a “neutral” rating on Genting Bhd with a target price of MYR5.20.At Resorts World New York City, three-month gross gambling revenue as of the end of August was $229 million, flat on the prior three months, but higher than pre-Covid levels.The resort increased its video gaming machines to 6,444, just under a maximum capacity of 6,500. Resorts World Catskills, which is 49 percent owned by Genting, has GGR of $60.9 million, up 30 percent from the prior three months, but 4 percent lower than the same period of 2019. Data is not yet available for Gentings’ $4 billion Resorts World Las Vegas, which opened in mid-June. However, Nomura points to strong state and city-wide data as a proxy. In Las Vegas, GGR for the period was $2.03 billion, up 24 percent sequentially and 21 percent higher than pre-Covid. “We believe that reopening momentum in the US casinos has been strong so far, with GGRs in most cases already above pre-COVID-19 levels,” the note said. “ This is all the more encouraging as inbound tourism to the US, especially from Asia, continues to be very limited. We believe the US operations will likely remain a key pillar for GENM and GENT’s earnings, given the higher vaccination coverage in the US and a lower appetite for strict lockdowns.”Genting Malaysia reopened its Resorts World Genting property on Sept. 30th, but at present visitation will be limited to guests within the home state. The government has said it won’t ease travel restrictions until the country reaches 90 percent vaccination rates.Genting Singapore is open with capacity restraints, though without inbound tourism, analysts don’t see much upside for revenue growth. Resorts World Manila in the Philippines is closed to the general public.


Genting Malaysia emerging stronger, labor the limitation: J.P. Morgan.

-GENM’s posted an annualized 2Q22 group EBITDA of RM620mn, at 94 percent of 2019’s full-year figures. Malaysia’s cost rationalization during the pandemic brought EBITDA margins back to 35% which is comparable to 2018 levels, pre-gaming tax hike, J.P. Morgan’s note reads. Malaysia (RWG) managed to achieve this result with only 60% of its hotel capacity. “We believe RWG is able to achieve RM3-3.5bn once visitation normalizes, and it reaps the harvest of the Genting Integrated Tourism Plan (GITP), J.P. Morgan expects.The brokerage argues there’s “more room to drive higher spend/pax.” RWG Malaysia attracted 5.2mn visitations in 2Q22 which is merely 72% of 2019 if annualized. Yet, annualized 2Q22 RWG Malaysia EBITDA is already at 90% of 2019. 2Q22 spend/pax was RM250, 17% lower than pre GITP. “The current limitation is labor which forced RWG to operate at 60% capacity,” the brokerage highlights. RWG has outsourced room keeping and has managed to open up more rooms (7,600 as of today vs. total capacity of 10k). More overnighters will boost spend/pax and thus profit, J.P. Morgan expects.The brokerage also underlines that RWG is diversifying gaming options. In 2Q22, RWG introduced new gaming options that have successfully brought in younger gaming crowds. Sky Avenue is still recovering from the pandemic, and J.P. Morgan expects more shopping options to be available in 4Q22 onwards.J.P. Morgan believes GENM’s post COVID-19 profit recovery should be strong and FY22-25E growth is sustainable as the expansion of outdoor theme park starts to contribute fully.GENM’s growth prospects post-COVID-19 are underpinned by “sticky” demand and new facilities, which the brokerage expects should lift visitation by 50%, to 30mn pa by 2023E. The opening of the new outdoor theme park, SkyWorlds, “could lift spend per visitor, as the ticket price is already 70% of historical spend per visitor,” the investors’ note reads, adding that the monopoly dominance, untapped Malay and young local Chinese demand and tourists support J.P. Morgan’s bullish thesis.


Analysts upbeat on Malaysian gaming sector

-Analysts have turned more upbeat about the prospects for Malaysia’s gambling operators, despite a recent upswing in new Covid-19 cases, saying the sector is good value as stocks are still down between 15 to 26 percent on the prior year. In a research note on the outlook for 2021, Nomura said it expects Genting Malaysia’s Resorts World Genting to stage a gradual recovery over coming quarters with a “sharp inflection” from 2022 with the opening of its new outdoor theme park.The Genting Highlands resort reopened in June and in Q3, revenue was already at 66 percent and EBITDA 79 percent of prior year levels. “This demonstrates local demand resilience as movement curbs were lifted in 3Q20 (70 percent of Malaysian revenue historically has come from locals), and the effect of cost rationalization undertaken by the group.”“While visitation dipped after October movement curbs, it rebounded towards year-end holidays again,” it said. Nomura rates Genting Malaysia a “buy” and sees 24 percent upside for the stock this year.The opening of the long-delayed theme park is seen as a key to driving visitation to the resort and was the crowning glory in the 10-year Genting Integrated Tourism Plan, which began in 2013.Research house Kenanga Research was similarly upbeat, saying it sees strong local casino revenue due to the opening of the outdoor theme park.“In all, we continue to rate the sector ‘overweight’ with Genting (TP: RM5.70) as our top pick for its deep value while for income seekers, both NFO players offer above-average yield of more than 5 percent,” it added, referring to number forecast operators Berjaya Sports Toto and Magnum Bhd.The firm said it expects NFO ticket sales to revert to pre Movement Control Order levels in the first half of this year, but said it does expect casino operators to take longer to normalize. UOB KayHian Research adds that the gambling stocks all have strong dividend yields, adding to their attractiveness for investors. “While both the casino and NFO subsectors’ intermediate dividend payouts will be compressed by weaker earnings, investors should gradually price in the gaming sector’s sustainable prospective yields of 4.2 percent to 7.5 percent from FY21 onwards. “Meanwhile, we also expect GenM to (pay) out lucrative dividends for 2021, given its lush gross cash of RM3.7 billion (RM0.62/share) and considering parent Genting’s cash needs to complete the construction of Resorts World Las Vegas. This should satisfy investors’ hunger for sustainable high-yield plays in a low interest rate environment and volatile capital market,” the firm said.


RGB swings to profit in 4Q21, optimistic about recovery

-Malaysia-listed RGB International swung to profit in 4Q21, and says it foresees a relatively stronger recovery in the gaming market in 2022 compared to the prior year period. Revenue in the fourth quarter amounted to RM56.6 million, down 4 percent year-on-year, whilst loss narrowed to RM166,000, down from a loss of RM6.7 million in the prior year. RGB said its sales and marketing segment of the business gained 3 percent revenue in the quarter due to an increase in the number of products sold and variation in product mix. However, the company’s Technical Support and Management segment revenue declined 19 percent, mainly due to a resurgence in Covid-19 cases. However the company noted it achieved better operational efficiency in the TSM division, reducing loss before tax by 57 percent in the quarter. Looking ahead, RGB said it expects global economic conditions to continue recovering with the progressive roll out of mass vaccination programs and the reopening of borders. “However, we expect market conditions to remain volatile for 2022 due to the uncertainties amid the fluidity of the COVID-19 situation especially in the countries where the Group operates. Barring unforeseen circumstances, the Group foresees a relatively stronger recovery in the gaming market than the previous year and therefore a better performance for the year 2022,” it said. RGB said it will also be continuing to look at new avenues, including expanding its efforts in providing remote gaming solutions for land-based casinos.Full year revenue increased 13 percent to RM216.3 million, whilst its net loss narrowed to RM7.0 million, down from RM29.1 million in the prior year.


Malaysia proposes tougher laws to reduce job scams related to online gambling

-The Malaysian government will consider tightening laws to protect its citizens from being conned by syndicates offering fake job offers abroad, following the country’s Foreign Affairs office receipt of 572 reports involving Malaysian who were victims of ‘job scam’ syndicates abroad.According to reports, most of the syndicates lure their victims using job ads on social media, including Facebook, by offering positions as customer service officers abroad with lucrative salaries.On arrival, their travel documents are destroyed and the victims are forced to work either as a scammer, or in online gambling operations.Without revealing the detailed policy changes, Malaysian Prime Minister Anwar Ibrahim has pledged to take necessary measures to protect citizens, emphasizing that: “we have taken a rather tough stand. We also urge Malaysians to be more vigilant and not be easily deceived”.Malaysia is one of the numerous Southeast Asian countries to report that its citizens have been roped into online scams, with even citizens of Hong Kong getting trapped in the online recruitment scams.Authorities have pledged bilateral agreement to crack down on the activities and protect their citizens, while going after the criminal syndicates behind them.


UOB Kay Hian names Genting Malaysia “top pick”

-Research House UOB Kay Hian has named Genting Malaysia as its top stock pick on expectations for a full recovery in 2022 as vaccines are rolled out.UOB Kay Hian bullish on gaming, names Genting top pick (Business Times)


Malaysian police arrest almost 2,000 people in illegal gambling crackdown

-According to BNN, this special operation was held from September 22nd to October 5th, with 7,761 inspections and 735 raids conducted across the country.Of the total arrests made, 802 individuals were apprehended for online gambling, while a staggering 1,069 people were detained for involvement in non-licensed public lottery activities.Among those arrested, several were allegedly involved in public lotteries and purchasing lottery tickets. Cash, computer equipment, and mobile phones was apprehended by Malaysian authorities during the operation.The operation was described by the Director of the Bukit Aman Criminal Investigation Department as one of the largest crackdowns on illegal gambling in the history of the country, and focused on tackling illegal online gambling and lottery betting.Illegal gambling is said to have caused a total of RM13 million ($2.75 million) in losses for the government.A recent report by the Asian Racing Federation (ARF) and The Mekong Club, alleged that Asia represented about 65 percent of global betting volume, legal and illegal, with the illegal market possibly as much as 10 times larger than the legal market.


Genting unit spent $1.22m in New York lobbying in 2020

-Genting New York, a unit of Malaysia’s Genting Group, spent $1.22 million in lobbying efforts in New York in 2020, making it the sixth-biggest spender in the state.The lobbying figures were released in the New York State Joint Commission on Public Ethics’ annual report.The operator, which in June opened its $4.3 billion Resorts World Las Vegas, has been pushing hard to expand in the U.S. and may consider a separate stock market listing there for its assets.It owns Empire Resorts, which runs Resorts World Catskills and Resorts World New York City.2020 annual report


RGB working on “remote gaming solutions” in 2020

-Gaming supplier RGB International Bhd says it has been working on remote gaming solutions for land-based casinos to bolster revenues following emergence of the covid-19 pandemic. In a 2020 annual report, RGB said that work on developing the new business model involves conducting test simulations for remote gaming solutions.“RGB is exploring the opportunity to venture within the area of remote gaming solutions as part of our business expansion and an alternative for land-based gaming operators.”Company release


Analysts forecast brighter skies ahead for Genting Malaysia

-Malaysia’s monopoly casino operator has operations in the U.S., U.K., Egypt and the Bahamas, but Malaysia has historically made up the bulk of its revenue. In 1Q22, the most recent figures available, the domestic operations generated MYR921.1 million, compared with MYR358 million in North America and MYR395 million in the U.K. and Egypt.The results were lower than analysts had expected due to slower visitation in Malaysia due to Omicron, especially in March. However, signs are that business will pick up in the second half.Genting Malaysia opened its delayed SkyWorlds theme park in February this year and analysts expect it 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.The $800 million theme park is spread over 26 acres and has nine themed zones. It is ultimately expected to feature 26 attractions, but not all were open in the first half.Analysts at CGSCIMB expect visitation will pick up in the second half of the year as more attractions come online.The firm is expecting 1.5 million visitors this year, rising to 2.3 million next year and 2.5 million in 2023. But it warns that the high start up costs will mean that there is likely to be a hit to Genting’s pre-tax profit of MYR174 million this year, and MYR58 million next, before beginning to boost earnings from 2025.HongLeong Investment Bank cut its forecasts for this year by 34.9 percent and next year by 3.8 percent following the 1Q22 miss. However, analyst Tan Kai Shuen remains upbeat about Genting Malaysia’s prospects.The bank has raised estimates for its target share price to RM3.91 from RM3.69.“We continue to like Genting Malaysia as we view Resorts World Genting as one of the prime beneficiaries with borders reopening, especially with the addition of the theme park that complements its gaming attraction, making it an attractive tourism spot that could capture visitors from all walks of life,” Tan said.As borders reopen, analysts also say that Genting Malaysia may benefit from the weakness of the Malaysian ringgit.The company has begun actively advertising overseas since the borders reopened on April 1st, especially in Singapore, analysts at CGSCIMB wrote.The Singapore market made up between 10 and 15 percent of all visitors in 2019 and the Singapore dollar this month hit an all-time high against the Malaysian currency.HongLeong’s Tan said the weaker currency may encourage local visitors to stay at home as traveling overseas will be more expensive. Conversely, it may boost foreign tourists and mass-market gamblers as it becomes cheaper than its regional peers.In 1Q22, Genting reached 50 percent of its 2019 gross gambling revenue, with a higher split coming from the VIP market at 55 percent, compared with the pre-Covid normal of about 40 percent to 50 percent, Nomura analysts Tushar Mohata and Alpa Aggarwal wrote.The group’s EBITDA margin fell to 29 percent from 38 percent in the prior quarter, due to higher costs to get customers to the resort and as headcount ramped up to service the facilities.Nomura has cut its forecasts for EBITDA in Malaysia this year by 11 percent and 10 percent next year, but the firm said it sees better quarters ahead. For the group as a whole, the firm raised its forecasts for 2022 EBITDA by 3 percent this year and cut by 1 percent for next, adding it is below consensus estimates.“We believe that the street might need to factor in new higher finance and depreciation run-rates, potentially leading to earnings cuts,” they said.Malaysia welcomed more than a million tourists in the first two months after its borders reopened on April 1st, already reaching half of the government’s arrivals target for this year. The country was expecting two million visitors for 2022. Tourism, Arts and Culture Minister Nancy Shukri was cited as saying that the majority of the tourists were coming from neighboring Singapore, although the government is also expecting increasing numbers from South Korea, Japan and Iran.BetMakers Technology Group said it has signed an agreement with Royal Sabah Turf Club to deliver a new advanced tote betting system and content management services to its Tambalang Race Course and associated off-course betting network in Malaysia through BetMakers’ Global Tote and Global Racing Network divisions. Under the terms of a new five-year agreement, BetMakers’ Global Tote division will upgrade Royal Sabah Turf Club’s tote system to the Quantum Tote Solution, the world’s most widely deployed pari-mutuel betting system. In addition, BetMakers’ Global Racing Network will hold the exclusive rights to distribute Royal Sabah Turf Club races globally, within both the tote and fixed odds markets.


Genting’s Lim says outlook uncertain, but will assess growth ops.

-Genting Bhd Chairman Lim Kok Thay says he expects global economic conditions to continue to recover and said the group will assess any business opportunities that arise that could complement existing operations or provide new growth.In his letter to shareholders in the group’s annual report, he also said Genting will continue to take proactive measures to improve productivity and efficiency.Although he says there have been signs of nascent recovery in the regional gaming markets, the outlook remains highly uncertain. The company has casino operations in Malaysia, Singapore, the U.S., U.K., Cairo and the Bahamas and is seeking a license in Japan.Genting annual report


RGB International posts narrowed loss in 3Q21

-Malaysia-listed RGB International recorded a narrowed loss of MYR5.6 million (US$1.3 million) in 3Q21, attributed mainly to a rise in revenue in the quarter compared to the prior-year period. Said revenue reached MYR70.1 million, up from MYR40 million in 3Q21. RGB International said this was driven by an increase in revenue from its Sales & Marketing segment – namely due to an increase in the number of products sold and variation in product mix. It also saw a boost in revenue in its Technical Support and Management segment, due to more outlets resuming operations in the quarter. Looking to the future, RGB said that it expects global economic conditions to continue recovering, aided by the progressive roll-out of mass vaccination programs and reopening of border restrictions. “However, we expect market conditions to remain volatile for the remainder of 2021 due to the uncertainties amid the fluidity of the COVID-19 situation especially in the countries where the Group operates. Amidst all these challenges, the Group foresees some recovery in the gaming market and therefore a better performance for the year 2021.”“The Group is optimizing its existing resources to increase the revenue during this unprecedented period and at the same time embarking on new avenues by implementing remote gaming solutions for land-based casinos in regulated markets. The Group has also put in place stringent health and precautionary measures at all its properties to comply with the relevant standard operating procedures and to ensure the safety and well-being of its employees and visitors at all times.”


Genting Highlands to reopen as Malaysia hits 80% vaccination

-Malaysia’s Resorts World Genting and two other tourism destinations will be given the green light to reopen as the country expands its domestic travel bubble.Tourism Minister Datuk Seri Nancy Shukri said the other two destinations are Pulao Tioman and Melaka.“We have allotted two weeks, so these destinations can get ready to operate again,” she was cited by local media as saying, adding that the proposal was for the tourism activities to resume by Oct 1. The expansion of the tourism bubble, which began with the island of Langkawi last week, came alongside news that Malaysia has now vaccinated 80 percent of its adult population. The government reopened the island of Langkawi in a pilot scheme on Sept. 16, following a similar model to that adopted by Thailand to open up Phuket.Nancy said that so far the operation had been a success, with no Covid cases reported amongst tourists. The ministry is expecting about 200,000 domestic tourists by the end of December, local media reports. UOB Kay Hian in a note last week said it expected the opening of Genting Malaysia’s property to be “imminent.” The property has been closed since June 1st as the country battled another wave of Covid. It warned that the shutdown would have a significant impact on business.


Maybank lowers Genting Malaysia’s FY24 forecast by 4 percent due to service tax rate hike

-‘The two percentage point service tax rate hike caused us to trim our FY24E/FY25E earnings estimates,’ according to Maybank’s latest investment memo.‘Longer term, the negative impact may be moderated by multiple remedial measures. Moreover, the slew of tourism-friendly measures that were tabled during the same Budget 2024 is positive for Genting Malaysia. Other catalysts are securing a full casino license in New York City and writing back its Mashpee Wampanoag investment.’Malaysia’s Budget 2024 was tabled on October 13th, and the service tax rate will be raised to 8 percent from 6 percent currently, starting from March 1, 2024.Analyst Samuel Shao Yang Yin points out that one of the taxes that Resorts World Genting (RWG), which traditionally contributes over 80 percent to group earnings, pays is the service tax.‘Recall that RWG bears the service tax for gamblers. For RWG, the service tax is currently calculated as (gross gaming revenue – casino tax) X 6/106. Thus, the increase in service tax rate by two percentage points is effectively a gaming tax hike for RWG.’Based on the calculation, the broker believes the impact of Genting Malaysia from the service tax hike is ‘while noticeable, minimal by our estimation.’‘Moreover, RWG can cut junket commission rates or direct VIP rebates rates, raise hotel room rates, delay salary increments, and ration water and energy consumption to moderate the impact of the service tax hike.’The same budget plan also designated 2026 as a Visit Malaysia Year (VMY), targeting 26.1 million foreign tourists and MYR97.6 billion ($20.5 billion) in tourism expenditure. MYR350 million ($73.4 million) will be set aside to boost tourism promotion and activities in 2024, and the issuance of visas-on-arrival, social visit passes, and multiple-entry visas will be eased.‘We hope the current 15 percent shortfall in RWG visitor arrivals relative to 2019 will be narrowed with more tourists from major source markets like China and India. Pre-COVID, 40-50% of Chinese tourists visit RWG.’RWG is expanding via the Genting Integrated Tourism Plan (GITP). The GITP involves 1,536 hotel rooms, an outdoor theme park, an indoor theme park, a mall, a plaza, and a new cable car line.Regarding the financial metrics, Maybank forecasts Genting Malaysia’s FY23 EBITDA to grow by 18 percent YoY as more rooms for gamblers are made available at RWG. The forecast for FY24 EBITDA is to grow by another 19 percent YoY as the COVID-19 pandemic fully subsides. ‘We expect the balance sheet to remain in net debt as GENM has been more progressive in paying dividends.’


Malaysia regulates electronic advertising of gambling industry

-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.Industry Guideline for the Advertisements of Unacceptable Products and Services (Gambling or Betting) (release)


Genting Malaysia theme park opening likely delayed to Feb., CNY seen as strong: Maybank

-The opening of Genting Malaysia’s SkyWorlds theme park has been delayed again to coincide with the Chinese New Year in February, which is likely to be positive for the operator, according to Maybank research.The park, which is expected to be the key draw in the revamped Resorts World Genting, was due to open on Dec. 10th, but was delayed as the company is ironing out software issues, the investment bank wrote. Despite the failure to open the theme park, visitation to the resort was strong over the Christmas period, it notes.Maybank said that according to the Google Mobility Retail & Recreation Index, which measures interest in retail and recreation relative to pre-Covid times, shows that Malaysians are more comfortable outdoors today, which is positive for Genting. Internet search trends also show that “RWG” is front of mind for many Malaysians during holidays.The country has a high vaccination rate and the number of hospitalisations and deaths has eased. Therefore as long as Omicron is kept at bay, the upcoming holidays are likely to be strong, the bank said. Maybank has a Buy rating on Genting Malaysia, with a slightly lower price target of MYR3.38 down from MYR3.40 previously. SkyWorlds is expected to be loss making, at least initially, the bank said. Therefore it has raised its estimates for 2021 earnings. It now expects the loss before interest and tax to be 2 percent narrower due to the deferred opening.Maybank has trimmed its earnings forecasts for 2022 and 2023 by five and 6 percent respectively. Analysts are expecting a brighter future for Genting Malaysia as the theme park is forecast to drive visitation, even if in itself it will be loss making. 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.


Genting debt reduction on track despite slow earnings recovery

-Genting Bhd is on track to reduce its leverage by the end of 2023, even though EBITDA in its primary markets of Malaysia and Singapore is unlikely to reach pre-pandemic levels until 2024, Fitch Ratings said.The firm said its expectations for debt reduction is based on a swift recovery in the U.S. market, lower capital spending from next year and a gradual recovery in Malaysia and Singapore.“All of Genting’s key operating markets have a high vaccination rate, which suggests a return to strict lockdowns is unlikely and therefore supports our recovery estimates for the issuer.”However Fitch also noted that the next six to nine months are “critical” in providing visibility on the sector’s recovery. Government’s are likely to provide clearer indications of their border and travel policies, which will determine if visitor levels can return to normal, or whether they are unlikely to return to pre-pandemic levels.The transition towards living with Covid in Singapore and Malaysia and handling of movement controls or border closures are key risks to our recovery expectations,” it said. “Prolonged curbs will mean structural challenges for operators to achieve pre-pandemic visitor levels.”Resorts World Genting in Malaysia was allowed to reopen on Sept. 30 after being closed for four months, while Resorts World Sentosa in Singapore has been mostly open this year, but is operating with capacity restrictions.Analysts expect the Malaysian arm to show a faster rebound as it is less reliant on foreign tourism. Malaysia has also now allowed interstate travel, which is seen as giving a further boost.Fitch rates Genting Bhd at BBB. It says its deleveraging will be helped by a 50 percent reduction of its share of capex from 2022. The agency is assuming capex for a $4.5 billion dollar expansion of the Singapore IR will be evenly spread out or even delayed until 2023 if the company faces construction constraints due to Covid.


Genting Malaysia’s US$800 million theme park to open in Q2

-Genting Malaysia said it’s putting the finishing touches on a long-awaited US$800 million outdoor theme park, which it’s planning to open in Q2 this year.Genting invests over S$1 billion in theme park, plans Q2 launch (Straits Times)


Malaysians complain police not taking action on gambling, drugs

-Malaysia’s Department of Integrity and Compliance Standards (JIPS) of the Royal Malaysia Police says it continues to receive many complaints from the public alleging the police are failing in their responsibilities to enforce the law, especially against illegal gambling and drug trafficking.Many complaints launched against police not taking action against drugs, gambling syndicates (Malay Mail)


Malaysia reviewing gambling laws to keep pace with rising online activity

-Malaysia is reviewing its gambling laws to ensure they are effective against illegal online activity amidst evidence of a spike in cases during Covid. Deputy Home Minister Datuk Seri Ismail Mohamed Said was cited by state news agency Bernama as saying that the Ministry of Finance is undertaking the review. It is seeking to ensure that the laws are up to date with the changing ways in which illegal syndicates work. He said a total of 2,294 charges involving online gambling were recorded nationwide in 2019; 2,911 charges in 2020; and 2,165 this year.The Malaysian government has been seeking to crackdown on illegal gambling for years, carrying out regular campaigns to stamp out the activity. Up to March this year, 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.However, online gambling continues to thrive.


RGB swings to Q1 loss on 56% revenue drop

-Malaysian supplier RGB swung to a loss in Q1 on a 56 percent drop in revenue as Covid control measures hit its technical support services and sales fell.It’s loss was MYR4.78 million compared with a profit of MYR3.69 million a year earlier. Revenue was MYR34.1 million.The group said, barring unforeseen circumstances, it expects conditions to improve as the year progresses.Company filing


Malaysia to push gambling laws review says Prime Minister

-The initiative was previously suggested by Deputy Minister of Home Affairs, Datuk Seri Ismail Mohamed in November 2021. He said a total of 2,294 charges involving online gambling were recorded nationwide in 2019; 2,911 charges in 2020; and 2,165 in 2021.The Malaysian government has been seeking to crack down on illegal gambling for years, carrying out regular campaigns to stamp out the activity. According to the Prime Minister, at least four laws related to gambling in the country are under evaluation, as the last amendment of the laws was made in 2001.The Malaysian PM considers that “a review is not only warranted but well overdue as the internet has made gambling easily accessible through local and offshore online gambling websites.”Malaysia, a Muslim-majority nation, is unusual in its regulation of various forms of gambling. Lotteries are permitted in Malaysia by the Lotteries Act in 1952, and horse racing was legalized in 1961. However, sports betting was forbidden by the Betting Act of 1953.Kedah state triggered criticism after banning 4D lottery sale points and immediately revoking licenses on January 1, 2023. Some opponents argued this would force foreign investors to look to foreign countries and players for illegal options to gamble.Resorts World Genting, the sole licensed gambling facility in Malaysia, is set in the Genting Highlands Resort. Genting Malaysia recorded revenue of $496.51 million in the first quarter of this year. According to local media, two of the 10 richest billionaires in Malaysia are linked to the gaming industry. 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. Malaysia’s 7th richest person is the well-known Genting Group boss Lim Kok Thay.


Genting Malaysia says SkyWorld attractions rollout a focus

-In an investor presentation this month, Genting said it intends to maximize yield at its Malaysian property by intensifying database analytics and targeted marketing efforts. It also plans to boost operational efficiencies and improve the quality of guest experience.Malaysia’s monopoly casino operator, 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. However, the ramp up has been slower-than-anticipated and only about three-quarters of its attractions are open.A progressive rollout of the remaining rides is a “focus” it said. Genting Malaysia also has properties in the U.K., Egypt, North America and the Bahamas.The U.S. has been a key focus, where it says it’s seeking to reinforce its position as the leading operator in the northeast region.It plans to intensify its marketing efforts to expand the U.S. customer base. It also plans to leverage improved facilities at its Resorts World New York City and its expanded product offerings to drive business volumes.The U.S. has seen a strong recovery, with gross gambling revenue mostly solidly above pre-pandemic levels.


Berjaya to sell Sports Toto business in corporate overhaul

-Malaysia’s diversified Berjaya Corp. said it plans to sell its Berjaya Sports Toto number forecasting business as part of a corporate overhaul.The company wants to shed the business as it’s in a highly regulated market, CEO Abdul Jalil Abdul Rasheed was reported as saying on a virtual conference.He added Berjaya is not in a hurry to sell as the unit produces good dividends, but will carry out the sale when the price is right.The Edge Markets


RGB: Developing Omni channel solutions

-RGB prides itself in our successful track record in the industry, where we continually evolve to deliver innovative and high-quality gaming solutions. We recognize the fact that to meet the ever increasing demands of the gaming market, especially now in this new era of digital convergence, gaming solution providers such as us must remain agile and respond to the ever-changing situation.With this firm belief in mind, we have collaborated with top-class digital gaming solution providers to offer best-of-breed solutions which converge land-based gaming operations with engaging digital experience, thus allowing casino operators to provide a truly omni-channel gaming experience to their patrons. Together with our partners, we offer a fully secured, all-in-one open gaming platform with electronic games, live streaming table games and many other online gaming offerings. This open gaming platform also provides for a simple integration with the operators’ casino management system (CMS) and the entire solution comes as a ‘Casino-as-a-Service’ total package.We also offer a truly unique online gaming offering which allows players to play real physical EGMs remotely through the use of streamed video, thus increasing machine utilization and profitability. This is not a reproduction of land-based games but an actual real time game play on an actual machine that is equipped with a camera, played via an engaging user interface.These collaborations expand RGB’s well-established, value-added solution portfolio, strengthening our focus on offering products that enhance customer experience and operational efficiencies.


Berjaya CEO buys stake, plans to restructure group

-Berjaya Group’s new CEO Abdul Jalil bin Abdul Rasheed has bought 70 million shares in the company at 28 sen a share and plans to restructure the Malaysian group whose interests span from gaming through to hotels, insurance and cars.Berjaya rallies as new CEO buys stake amidst pledge to restructure firm (Bloomberg)


Resorts World Genting seen closed for three months, theme park in Dec.

-Genting Malaysia’s Resorts World Genting is likely to be closed for three months due to the latest Covid outbreaks, with the opening of its highly anticipated outdoor theme park pushed back until December, according to Maybank Research.This is the third lockdown for Malaysia’s only casino resort, which closed on Mays 31st, and as a result the firm has widened its estimate for the core net loss by 76 percent to MYR676 million.


Genting Malaysia sees $88.82 million loss in 4Q22 despite $549 million in revenue

-The figure comes despite a 28.8 percent revenue increase year-on-year, to RM2.43 billion ($548.9 million), the majority of which was derived from its Resorts World Genting (RWG) property, the only licensed casino in Malaysia.The group’s adjusted EBITDA declined, however, by 36 percent annually, to RM472.9 million ($106.62 million), with its Malaysia property contributing RM467.3 million ($105.35 million) – a rise of 30 percent annually.Revenue from the leisure and hospitality business in the country rose by 65 percent, to RM1.58 billion ($357.84 million) ‘largely attributable to the overall higher volume of business registered at Resorts World Genting’ due to the ramp up of business after COVID, reopening of borders and launch of the SkyWorlds theme park in early 2022.For the whole year, the group saw Malaysian revenue more than triple, to RM5.21 billion ($1.17 billion), also due to the ‘overall higher volume of business’ at Resorts World Genting and a strong yearly comparison due to COVID restrictions in 2021.Adjusted EBITDA for 2022 totaled RM2.11 billion ($477.2 million), up 191 percent yearly, while it strongly narrowed its loss to RM519.97 million ($117.22 million), from RM946.83 million ($213.46 million) in 2021.Looking ahead, the group notes that ‘in Malaysia, economic growth is expected to continue albeit at a slower pace, supported by domestic demand’.It notes that it ‘will continue to focus on ramping up its operations at RWG to pre-pandemic capacity’ and is working to ‘attract incremental foreign visitation to the resort’ as travel restrictions in the region are relaxed.It furthers that the company ‘continues to be cautiously optimistic on the near-term outlook of the leisure and hospitality industry and remains positive in the longer-term’.The group’s Malaysian property comprises seven hotels, with 10,500 rooms, as well as gaming, a theme park and business convention facilities.


Genting stock jumps as Malaysia eases restrictions

-Shares in Genting Malaysia jumped 4 percent on Monday after the government announced some easing of its strict Covid-control restrictions.Genting’s Resorts World Genting casino has been closed since the end of May as the country reported rising cases in its worst outbreak of the pandemic.The government announced that restrictions will be eased in eight states from Tuesday for people who are fully vaccinated. The states include Pahang, which is home to Resorts World Genting, and are home to about half of the total population. The measures will allow dining in at restaurants, outdoor individual sports and interstate tourism.The Kuala Lumpur capital region and Selangor are not included as case rates remain high. The government said the easing was made possible by higher vaccination rates, which are reducing the impact of Covid on the health system. As of August 8th, about half of the entire population had received at least one dose of the vaccine. In a recent note, Nomura said it expected Malaysia to achieve 70 percent vaccination rates by the end of the year. The analysts have Genting Malaysia among their top picks on expectations for a boost from pent-up demand. The easing of restrictions comes despite Malaysia recording a seven-day average for Covid infections of more than 18,000. It posted 18,688 new cases on Sunday. Genting has not yet indicated whether its resort will open. When the closure was announced, analysts at Maybank said they expected the closure to last for three months. However, they didn’t see the shutdown to be as harmful as in 2020 as other properties around the world, including the U.S. are opening and able to cushion the impact.


Malaysia plans to open to international tourists on Jan 1

-Malaysia is considering opening its borders to international travellers on January 1 next year in a bid to accelerate the country’s economic recovery. Malaysia’s National Recovery Council chairman Tan Sri Muhyiddin Yassin on Thursday said the Special Committee on Pandemic management will identify countries with high vaccination rates against Covid-19 and will permit its citizens to travel to Malaysia. He said the decision to reopen the borders is due to Malaysia’s high-immunisation rates with 95 percent of the adult population now fully vaccinated. “Our tourism sector will suffer losses of almost RM90mil if the borders were to remain closed. That is how much revenue the country can generate from the tourism industry,” he said.In related news, as of today, Malaysia has opened up its international travel bubble for Langkawi, home to Genting’s Resorts World Langkawi. This would allow fully vaccinated foreign tourists to enter the island and holiday without the need for quarantine. Travelers must plan a visit of at least three days on the island, have travel insurance covering at least $80,000 and are required to engage a local tour guide.


Malaysia gaming sector prospects looking “increasingly certain”: RHB

-The prospects for Malaysia’s gaming industry are looking “increasingly certain” as the country moves into the endemic phase of Covid, said RHB Research, which has an overweight rating on the sector.The research firm said its top pick is conglomerate Genting Bhd, with Magnum Bhd its favorite amongst the country’s number forecasting operators (NFOs), according to local media reports.Genting Bhd will benefit from a recovery at both its Genting Malaysia and Genting Singapore units, as well as the ramp-up of Resorts World Las Vegas. It will also benefit from the high exposure of its plantations unit to rising crude palm oil prices.“Foreign investors may also find Genting’s regional and U.S. exposure an attractive alternative to the Macau gaming sector,” RHB was cited as saying. RHB said Resorts World Genting has shown a stronger-than-expected recovery in 4Q21 and although the rise of Omicron will have dampened visitation in February and March, it should see stronger numbers moving forward.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. The firm said ticket sales for the NFO operators had been slow in the final quarter, but are now improving and have returned to about 85 percent of pre-pandemic levels.


Genting SkyWorlds opening to drive stronger visitation at RWG: Analysts

-The opening of the new outdoor theme park Genting SkyWorlds at Resorts World Genting is expected to bring “higher than expected” visitor arrivals to the property as early as November, according to analysts at RHB Research, reported by The Star.“We understand that the theme park is ready to commence operations anytime soon and believe it could happen in November, which will be timely to capture the pent-up demand post reopening in the run-up to the year-end holidays,” said the analysts in a report.The firm said that following a recent visit to the property, it was encouraged by the crowd. The firm noted that all tables on the first floor of SkyCasino were open with around 3-7 people per table, and that there was a long line for the SkyCasino guest service counter as many were applying for new memberships due to pent up demand. They also witnessed decent footfall at the SkyAvenue mall. Though the numbers have not yet reached pre-pandemic levels with some facilities still closed.After closing on June 1, 2021 to help fight the spread of Covid-19, Resorts World Genting reopened months later on a limited basis on Sept. 30. As Malaysia’s vaccination rates continue to climb, more visitors are expected to be able to visit the entertainment hot spot.


Genting Malaysia posts positive 2020 EBITDA, despite revenue plunge

-Genting Malaysia reported positive adjusted EBITDA of RM350.3 million for 2020 despite seeing a 56 percent drop in revenue due to the Covid-19 pandemic.Genting Malaysia Q4/2020 results (Company filing)


Maybank retains “buy” on Genting Singapore

-Maybank Kim Eng’s Yin Shao Yang is keeping his “buy” call and 95 cents target price on Genting Singapore, following 4QFY2020 earnings reported by Las Vegas Sands Corp.Maybank’s Kim Eng keeps Genting Singapore at “buy” (The Edge)


RWLV tipped for stronger second half as Las Vegas tourism gains: HongLeong

-The resort, which opened last year, had a slow first quarter due to an ongoing mask mandate and rising Omicron cases. However, March saw a strong recovery and that continued into April and May with visitor volumes to Las Vegas close to pre-pandemic levels at 95.5 percent and 93.4 percent respectively.“RWLV, which has an Asian-inspired design and features several Asian-themed attractions such as a Southeast Asian themed outdoor pool, Singapore-based night club Zouk, Asian restaurants Fuhu and Genting Palace, would likely be able to attract and benefit from the return of Asian visitors,” analyst Tan Kai Shuen wrote. The resort, which has had relatively low mid-week occupancy, is also likely to benefit from the return of travelers to the Las Vegas Convention Center, which is located nearby. HongLeong has a Buy rating on Genting stock and said the company will provide exposure to RWLV, which will have strong growth potential in the longer term. The resort opened on June 24th, 2020. The $4.3 billion property will be the largest on the Las Vegas Strip and the first from the ground up resort to open in more than a decade.


Malaysia still mulling online gambling regulation to stop tax bleed

-Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin told The Star newspaper that the government is looking at amending the Common Gaming Houses Act 1953 to allow online games involving “betting” and “gift offers” to be regulated.The report said the law is under the jurisdiction of the Ministry of Finance, which was approached about two months ago with proposals to make the changes. The Prime Minister’s Department is waiting for a response from the MOF on the issue.The newspaper reported Datuk Seri Wan Junaidi Tuanku Jaafar, a separate minister in the Prime Minister’s Department as saying reform to the gambling law is long overdue and outdated.The law dates back to 1953 and has no provision for online gambling.Wan said the taxes could be used to help rebuild infrastructure.“These taxes can be used to solve many problems…issues with roads, drains and other, but the government is unable to do so as it doesn’t have a mechanism.”Malaysia has sought to crackdown on illegal gambling for years, launching successive campaigns to stamp out the practice. However, in the Covid crisis triggered a change of heart as the country sought ways to shore up its economy.Zahidi first mooted the idea in November last year. However, industry insiders in Malaysia has said the volatile political situation in the country is hindering progress. The country will need a united political front to push through the changes and at present that’s not the case. According to reports, The Election Commission has begun gearing up for the next general election as some politicians push for polls to be brought forward to this year, instead of the September 2023 deadline.


Genting Malaysia raising $112 million to finance development/redevelopment of IRs

-In a statement to the Malaysian bourse, the group notes that the funds will be raised via medium term notes, with the first tranche of RM250 million to carry a term of five years, at a rate of 5.07 percent per year.The second tranche comprises RM150 million, for seven years at 5.35 percent, while the third comprises RM100 million, for 10 years, at 5.52 percent.The funds comprise a larger RM5 billion program the group has been engaged in since 2014.The proceeds follow other capital-raising efforts by Genting, such as the sale of four land parcels in Miami, which netted the company $967 million, even as it ramps up its efforts to bid for a New York casino license.


Little upside seen for Genting group stock

-There’s little current upside seen for the stock price of the sprawling Genting Group empire, with both the parent company and its Genting Malaysia unit at risk of losing their place on the benchmark FBM KLCI index.According to Maybank Research, the market capitalization of the two companies has fallen significantly due to the impact of Covid-19. Genting Malaysia is now ranked in #35 position, while Genting is at #33. They’re likely to be replaced on the index by glovemakers Supermax and Kossan, which have risen to #20 and #24 respectively.The index is scheduled for review in Nov./Dec. and any changes are likely to become effective from Dec. 21st.Maybank has a Hold rating on Genting and is ascribing a wider discount to its sum of the parts share price valuation of 55 percent, compared with 50 percent previously.Explaining its rationale, the firm said at present, it’s assigning zero valuation to the company’s $4.3 billion Resorts World Las Vegas property, which is scheduled to open next summer, due to the pandemic situation in the U.S.“If the Covid-19 pandemic does not stabilize by the time RWLV opens in the summer of 2021, we fear it will generate losses,” it says.The research group also points to other unfavourable factors that have caused the share price to sum of the parts discount to widen in recent years. These include a 10 percentage point hike in casino duties that came into effect in January 2019 for Genting Malaysia, coupled with a 50 percent increase in casino entry fees in Singapore, which has eroded Resorts World Sentosa’s local visitor base at a time while its business has been hit by the decelerating Chinese economy.A long history of related party transactions has also made investors wary of the group’s equity and could potentially weigh on earnings.The latest was the acquisition of a 49 percent stake in loss-making Empire Resorts in the fourth quarter of last year from Genting’s controlling shareholder, the Lim family. Maybank reckons this will add more than MYR100 million in losses per annum.Genting gets between 80 to 90 percent of its revenue from its casino operations through Genting Malaysia and Genting Singapore. As a result of plunging visitation, group wide EBITDA is likely to be down 70 percent this year, before seeing a 154 percent rebound next year. Maybank has an MYR3.26 share price target on the group and sees less than 10 percent upside potential.


RGB COO disposing of shares

-The Chief Operating Officer of Malaysia’s RGB International is making a further disposal of shares, selling off 500,000 ordinary shares.No specific reason for the sale was given in the company’s announcement, but the company COO, Steven Datuk Lim Tow Boon, made a similar disposal in May, also of 500,000 shares.The moves come as RGB tries to return its stock price to the highs seen in 2019, which crashed in March of 2020 amongst the effects of the pandemic.RGB recorded a loss of some MYR4.4 million ($1.1 million) during the first quarter of the year, a 200 percent decline from the MYR4.6 million in profit in the same quarter of 2020.Amongst the downturn in customer volume at land-based casinos, the company recently announced that it was exploring a “remote gaming solution”, targeting operators of land-based casinos.(announcement)


Malaysia


Genting Group credit rating confirmed, outlook remains negative

-Moody’s has reaffirmed the credit ratings of Genting Bhd and Genting Singapore, but said the outlook remains negative due to the uncertainty regarding the pace of recovery.The ratings agency points out that Genting, one of the world’s largest casino operators, has good access to funding, which will help provide support even though cash flow from its integrated resorts worldwide remains weak.Genting’s Malaysian unit has the monopoly casino license in Malaysia, while it holds duopoly in Singapore. The group is opening a more than $4 billion resort in Las Vegas later this summer, while it also has operations in New York, the U.K. and the Bahamas.Moody’s reaffirms Genting credit rating (Moody’s)


Genting Malaysia reopening likely “imminent” : UOB Kay Hian

-Genting Malaysia has not yet reopened its casinos, but the permission to resume operations is expected to be “imminent,” local brokerage house UOB Kay Hian wrote in a note.The country’s number forecast operators (NFOs), akin to lottery shops, were permitted to restart from Sept. 15 and the brokerage expects a swift recovery due to pent-up demand. “With the nation’s encouraging vaccination milestones, we are optimistic that the NFOs will chart an uninterrupted swift earnings recovery and meaningful capital appreciation,” local media reported the firm as saying. “Investors will again be attracted to the sector’s compelling risk-reward return, resilient cash flows and more than 6.6 percent lucrative yield. Maintain overweight,” it said.The analysts said they expected to see a steep earnings recovery from 4Q21 onwards as vaccination rates improve. About 54 percent of the population have received both jabs. Malaysia’s two listed NFOs are Berjaya Sports Toto and Magnum.Resorts World Genting, the country’s only integrated resort, has been closed since May 31 due to a spike in Covid cases in Malaysia. UOB Kay Hian has an overweight rating on the gaming sector.


Easing of travel restrictions to boost Genting Malaysia

-The Malaysian government’s easing of travel restrictions to allow inter-state travel from Dec. 7th should provide a boost to visitation to Genting Malaysia, UOB Kay Hian Malaysia Research says.Interstate travel to boost Genting Malaysia (The Star)


Genting Highlands tourism bubble suspended after PM intervention

-The tourism bubble at Tioman Island and Genting Highlands, which was scheduled to begin on October 1 has been suspended, according to Tourism Pahang general manager Kamaruddin Ibrahim.Kamaruddin said the decision was made during a recently held special meeting with the Malaysian National Security Council (MKN), which was chaired by Prime Minister Datuk Seri Ismail Sabri Yaakob, who said that the reopening of island resorts and tourism centers and interstate travel would only be allowed once the vaccination rate of the country’s adult population reaches 90 percent. Until then, those travelling to both Tioman Island and Genting Highlands will only be allowed for fully vaccinated residents of Pahang from approved locations under Phase 3 of the National Recovery Plan. Kamaruddin said that the reopening for both locations to those outside of the state is expected to be officially announced by the prime minister at a later time.“This may take another two or three more weeks, or whenever the vaccination rate of the country’s adult population has reached 90%,” he added. “For the out-of-state tourists who have already made reservations, we ask that they contact the tourism operators for advice, either to postpone their trip or otherwise.”


Genting’s Lim “super confident” on U.S. business, will seek listing

-Genting Chairman Lim Kok Thay said he’s “super confident” about the future of the company’s U.S. assets and will seek a listing when business improves.“There’s unmet demand as people had stayed home for so long, and now the increase in vaccination and falling cases have given consumers the confidence to spend again,” Lim said in an interview with Bloomberg Television on Friday. “The group is “super confident” on its projects in the U.S. and would look to list the business when the numbers pick up and investor confidence returns, he said.”Lim was speaking after the opening of Genting’s $4.3 billion, Resorts World Las Vegas on Thursday.Bloomberg


Genting Malaysia injects $150 million of capital in Empire Resorts

-Genting Malaysia on Monday announced it has injected another $150 million of equity into its U.S.-based Empire Resorts.Empire Resorts owns and operates Resorts World Catskills, a casino resort which is located in Sullivan County, New York, approximately 90 miles from New York City, as well as the Monticello Raceway, a horse racing facility located in Monticello, New York.Genting said it has injected funds via a subscription agreement to subscribe up to US$150 million of additional Series L. It said the proceeds from the Series L will be utilized by Empire to facilitate its long-term financing plan. Genting’s latest injection follows similar capital injection moves in March 2020 of $40 million, September 2020 of $150 million and March 2021 of another $20 million.


Malaysia arrests high-ranking businessman for bribery in gambling case

-The Malaysia Anti-Corruption Commission has arrested a high-ranking businessman suspected of accepting bribes worth RM300,000 for help in releasing 22 Chinese nationals held in an online gambling bust. The man carried the title of “Datuk Seri,” which denotes a high rank.MACC arrests businessman with “Datuk Seri” title in RM300,000 bribery case (Malay Times)


Berjaya Sports 4Q revenue jumps 137.2% on more draws

-Malaysia’s Berjaya Sports Toto said revenue in 4Q21 ending June 30th jumped 137.2 percent, helped by an increased number of draws for its Sports Toto unit. Revenue for the period was RM475.1 million ($113.5 million). During the quarter there were 28 draws in its 4-D numbers forecasting business, compared with only 6 in the prior year period, which was affected by the country’s first round of Covid lockdowns. The group reported a pre-tax profit of RM49.2 million in the current quarter as compared to a pre-tax loss of RM45.5 million in the corresponding quarter of the previous year.Berjaya said its U.K. luxury car business had also seen an improvement, with revenue up 72.4 percent. For the year as a whole, the company said revenue and pre-tax profit gained 4.2 percent and 24.1 percent respectively. “The prolonged lockdown and irregular business disruptions had dampened consumer sentiments and excitement from the draws as well as caused a change in the punters’ spending behaviour,” it noted.


Genting and NagaCorp bosses amongst Top 10 richest billionaires in Malaysia

-The two moguls are also the only classified billionaires in Malaysia who have businesses deeply related to gambling and casinos. Chen Lip Keong, founder of NagaCorp, was classified as the 7th richest individual in the nation, with a net worth of $2.8 billion. According to Forbes, Malaysia’s 8th richest person is the well-known Genting Group boss Lim Kok Thay – with a wealth of $2.3 billion. Chen Lip Keong won a contract to operate a casino in Phnom Penh in 1994. That casino, NagaWorld, eventually built Chen’s fortune. NagaWorld was 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.Lim Kok Thay is the Chairman and CEO of Genting, a Malaysian company known for its businesses and luxury brands in the leisure and hospitality sector.Lim’s Genting Singapore operates the famous Resorts World Sentosa, one of only two integrated resorts licensed to operate in the city.Genting also operates the only licensed casino in Malaysia. The group also operates in the United States and is attempting to secure a New York casino license.Lim 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.Genting Hong Kong de-listed in mid-May from Hong Kong exchanges.


Genting Malaysia stock drops 5% as Covid cases surge

-Stock in Genting Malaysia ended the day five percent lower on Wednesday after the country reported a record spike in Covid cases, triggering calls for a stricter lockdown.Genting Malaysia owns the Resorts World Genting property, which as of the time of writing remains open.Malaysia reports record daily covid cases as pressure mounts (Bloomberg)


Maybank cuts EPS expectations for Genting as slow recovery in foreign visitor arrivals in Malaysia

-In a Wednesday note, Maybank said it had cut Genting‘s earnings per share (EPS) by 24 percent for FY23 and 8 percent, 5 percent for FY24 and FY25, respectively. Analyst Yin Shao Yang said that “We still expect earnings to recover to FY19 levels by FY25. Thus, we opine that our investment thesis on Genting as a post-COVID recovery play still holds”, despite trimming the earning forecast for both Genting Malaysia and Singapore.The Investment Bank maintains a “Buy” rating on Genting‘s shares due to the gradual recovery of the Malaysian ringgit as the analyst believes that the Malaysian currency recovery is a positive factor for the company’s valuation.“We continue to like it fundamentally as a post-COVID recovery play. More than a decade of historical data tells us that the recovering Malaysian ringgit is a share price catalyst. GENT now scores higher in our proprietary ESG scoring methodology at 59 (46 previously).”, it wrote.Yang also notes that ROEs have fallen from >10% pre-FY12 to <10% post-FY18 due to Resorts World Sentosa in Singapore “being pressured by the weak Chinese economy”.Regarding swing factors for the company’s performance, Maybank mentions that the mass market mix tilting towards the mass market will expand margins due to fewer commissions and rebates. And as Genting Malaysia is expanding RWG via Genting Integrated Tourism Plan (GITP), it is expected to have higher visitor arrivals to RWG as GITP’s purpose is to attract more high-margin mass market gamblers.The report also notes that there are still bad debt issues, as the Chinese account for most of Genting Singapore and Genting UK VIPs, but gambling debts are not enforceable in China.


Genting Malaysia says preparations underway for SkyWorlds theme park

-Genting Malaysia says that “preparations are underway” for the opening of its Genting SkyWorlds outdoor theme park, which it describes as a key growth initiative for the integrated resort. However, the company did not specify when it would open to the public, leaving analysts the role of predicting its opening date. Earlier this month, analysts from Maybank forecasted the theme park to open sometime in February to coincide with Chinese New Year. More recently, Affin Hwang Investment Bank said it expected the theme park to open in the first quarter of 2022. According to The Edge Markets, the analysts said there is a “high likelihood” of the theme park’s 1Q22 opening, but added that it does not expect the opening to be a re-rating catalyst for Genting Malaysia shares. “As the park would be operating at a capped capacity below its 20,000 visitors/day capacity due to social distancing requirements, the park would be operating at a loss, based on our forecast. “As such, the impact from the increased overall visitation might be limited, but it would help raise the average spend per visitation,” said analyst Ng Chi Hoong.


Genting Malaysia asks staff for another round of pay cuts

-Genting Malaysia is asking staff to take temporary pay cuts of between 15-20 percent as it seeks to cut costs amid ongoing Covid shutdowns, Bloomberg reports citing an internal memo.


Genting’s domestic demand to help fuel recovery

-Genting Malaysia benefits from strong support from its domestic market, which means it’s better positioned for a faster post-pandemic recovery, Fitch Ratings said.The ratings agency expects Genting’s EBITDA to return to pre-pandemic levels and its net debt to EBITDA to fall below 3x by end 2022.In Q3, the company’s operations’ revenue and EBITDA reached 66 percent and 79 percent of Q3, 2019 levels. Although the resort has since been hit by new movement controls due to outbreaks of Covid, Fitch said that the jump in GGR when there are no travel bans shows resilient domestic demand.


Genting Group U.S. GGR improving in April: Nomura

-Genting Group’s U.S. operations saw an improving trend in gross gambling revenue in April, according to research from Nomura. Genting owns Resorts World Las Vegas directly, while its Genting Malaysia unit operates Resorts World New York City and has a 49 percent state in Resorts World Catskills.The firm said the New York property has gross gambling revenue of $226 million in the three months to end April. That was up 13 percent year-on-year and 11 percent sequentially. It saw a slight dip in April revenue of 1 percent, likely due to a smaller number of video gaming machines in operation. The group had 150 less machines than in the prior three-month period.The Catskills resort recorded three-month GGR of $54 million, up 40 percent year-on-year and 1 percent sequentially. It saw a major rebound in April, with GGR up 41 percent over the same month a year earlier and 24 percent higher than the prior month.Resorts World Las Vegas doesn’t report monthly revenue, so Nomura takes overall Las Vegas Strip revenue as an indicator. GGR there was $1.9 billion, up 45 percent year-on-year, but down 2 percent sequentiallyh. In April, GGR was up 23 percent on an annual basis.Nomura said it is reiterating its buy rating on Genting Malaysia with an unchanged share price of MYR3.60, some 18 percent higher than current levels. “We think the next catalyst for the stock will be an increase in visitor arrivals for the rest of the year, which should help improve earnings.”


New York casino may add $145m in net profit to Genting Malaysia

-Genting Malaysia would likely see a $145 million boost to net profit per annum should it be granted a casino license for New York State, Maybank Research said. The New York State Gaming Commission has launched a request for information for three downstate casino licenses. The RFI is looking for interest from parties on the appropriate size and scope of casino developments in the area, the value of the gaming license and the process that should be used in any award consideration.The deadline for responses to the RFI is Dec. 10, 2021. The regulator will prepare a report for the New York governor and state legislature within the following six months. Maybank argues that Genting is in a good position to win a license, which will be the “ultimate prize” for the company. At present, Genting’s Resorts World New York is only able to offer slot machines.“We opine that RWNYC will have an edge as it can deploy table games and generate additional tax revenue for New York State quickly as opposed to a greenfield casino,” it said.In addition to the boost to net profit, Maybank said a full casino license may add MYR0.53 to its discounted cash flow-based target price for Genting Malaysia. This would take its best-case scenario target prices to MYR3.93, compared with its share price of MYR3.17 on Monday. Genting has seen a strong rebound in its North American operations since Covid, with revenue helping to offset the impact of the slow recovery seen in Asian operations.At Resorts World New York City, three-month gross gambling revenue as of the end of August was $229 million, flat on the prior three months, but higher than pre-Covid levels, according to calculations from Nomura. The resort increased its video gaming machines to 6,444, just under a maximum capacity of 6,500. Resorts World Catskills, which is 49 percent owned by Genting, has GGR of $60.9 million, up 30 percent from the prior three months, but 4 percent lower than the same period of 2019. Data is not yet available for Gentings’ $4 billion Resorts World Las Vegas, which opened in mid-June. However, Nomura points to strong state and city-wide data as a proxy. In Las Vegas, GGR for the period was $2.03 billion, up 24 percent sequentially and 21 percent higher than pre-Covid.


Malaysia reverses plan to take legal action against Meta over gambling content

-According to Reuters, communications minister Fahmi Fadzil commented in an interview that following “positive” engagement with the firm on tackling harmful content on the social media platform Malaysian authorities might not look into the group’s operations after all.In June, the Malaysian Communications and Multimedia Commission (MCMC) said it would take legal action against Meta for failing to act against “undesirable” content relating to race, royalty, religion, defamation, impersonation, online gambling, and scam advertisements.Fahmi said Meta had since given a firm commitment to work with Malaysian authorities, including the regulator and the police, to tackle such posts on its platforms.”I don’t think MCMC needs at this point in time to initiate any legal action. I think this level of cooperation is very positive,” he said, adding that the government was considering measures such as fines against social media platforms if they failed to tackle harmful content.Facebook is Malaysia’s biggest social media platform, with an estimated 60 percent of the country’s 33 million people having a registered account.