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enting Malaysia’s RM10 billion “We understand that Malaysians continue ($2.4 billion) expansion of its to dominate visitation to Genting Highland, of highlands resort, known as the which day trippers constitute about 70 percent Genting Integrated Tourism of total visitation. On the other hand, Chinese Plan (GITP), is seen as the biggest driver for tourists only made up about 3 percent of total potential growth at the Malaysian operator. visitations to Genting Highland,” it said in a The ten-year plan was first announced in 2013 recent report. and foresaw a budget of RM5 billion. That was subsequently doubled, mainly to account for Overseas expansion more spending on theme park attractions. The group had remained tight lipped In Q2, the group reported total revenue about the casino component of the expansion, increased by 13 percent to RM2.23 billion, while however, chairman and chief executive Tan adjusted earnings before interest, taxation, Sri Lim Kok Thay has now said the plans depreciation and amortization and profit don’t envisage extra space on the casino floor. before tax grew by 52 percent to RM662.2 While total area for gaming will not million and 89 percent to RM512.1 million increase, this doesn’t mean there will be no respectively from 2Q15. Net profit more than additional facilities, said Lim. “We will see. If doubled to RM465.3 million during the quarter. you can fit more tables into the same space, However, domestic growth was sluggish, why not?” with revenue rising just “We would start 4 percent. Revenue to ‘soft open’ part of it from the group’s U.K. WE UNDERSTAND at the end of this year, operations was up 71 and progressively roll THAT MALAYSIANS percent, with revenue everything out next year. CONTINUE TO DOMINATE from the U.S. up 13 percent. VISITATION TO GENTING Rising visitors The company has HIGHLANDS, OF been on an aggressive The company is WHICH DAY TRIPPERS overseas expansion forecast to open its Sky push in recent years, Avenue & Sky Plaza CONSTITUTE ABOUT in particular in North shopping malls, and a 70 PERCENT OF TOTAL America. new cable car station Since entering the progressively by end VISITATION. ON THE US market in 2011 with 2016. However, its much OTHER HAND, CHINESE the launch of Resorts touted Twentieth Century World New York City, Fox World theme park TOURISTS ONLY MADE Genting Group has has been delayed to late UP ABOUT 3 PERCENT OF made a number of 2017. Phase 2 will see major investments in TOTAL VISITATIONS TO the construction of more the country. luxury hotels as well as GENTING HIGHLANDS These investments a show arena seating up have included the $236 to 10,000. million purchase of According to Alliance real-estate in Miami DBS research, the opening of new facilities is in 2011, a near $250 million investment likely to drive further visitation. The number as part of an agreement to run a proposed of visitors is likely to improve from 19 million $1 billion tribal development in Taunton, in 2015 to 25 million by 2018, on track to meet Massachusetts, and, most eye-catchingly, its target of 30 million by 2020. The higher plans for the estimated $4 billion Resorts visitation, coupled with the potential availability World Las Vegas, which will be the first major of 300 new gaming tables, are expected to new development on the Strip for almost a drive its earnings, it said in a recent report. decade when it opens in 2019. The weak Malaysian ringgit is also expected Genting has explored a second license in to attract more tourists, making the country New York, missing out on a proposed Orange cheaper in relation to some of its regional County development in 2014. However, earlier neighbours. However, DBS points out that this year it was granted a license to operate the majority of visitors to the resort is likely a further 1,000 video lottery devices on site to continue to be Malaysian. and is planning for a Phase Two expansion.

GROSS GAMING REVENUE Genting Malaysia Q2 revenue RM2.23b Malaysia leisure & hospitality revenue RM1,34b

+13%

+4%

Genting UK RM504.2m

+71%

Genting US RM351.6m

+13%

TOURISM TARGET Y16 30.5m arrivals RM103b receipts TARGET Y20 36m arrivals RM168b receipts

No online gambling Malaysian authorities have noted they have no plans to legalize online gambling, saying that the people have enough options if they want to gamble. InspectorGeneral of Police, Tan Sri Khalid Abu Bakar said: “I think we have enough means for the people to gamble; we have Magnum, Toto and so on.” Khalid said Malaysian police had proposed some amendments to the Common Gaming Houses Act 1953, but these were not related to online gambling.

Genting sells Genting HK stake Genting Malaysia said it has sold its 16.87 percent stake in its sister company Genting Hong Kong for about $415 million. The sale price for the 1,431,059,180 shares was $0.29 a share, which represents an 8.2 percent premium to the five-day weighted average trading price. Genting sold the stock to Golden Hope Ltd, a discretionary trust in which Tan Sri Lim Kok Thay and other family members of the founder of the Genting Group are beneficiaries. Golden Hope owned 47.22 percent of Genting Hong Kong as of the end of September.

Asia Gaming Briefings | November 2016

AGBriefings November 2016  

AGB brings you extensive coverage across all types of gaming, across 22 Asia jurisdictions.

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