Latest news with #GentingBhd
Business Times
10-07-2025
- Business
- Business Times
Casinos stay robust in Singapore, Malaysia as Cambodia, Thailand take hits: S&P Global
[SINGAPORE] The casino and gaming industry looks set to remain resilient in some Asean economies, a report by market intelligence provider S&P Global indicated on Tuesday (Jul 8). This is despite increased volatility in the macro environment, as tariffs and labour constraints continue to bring uncertainty. Industry revenues continue to be propped up by a premium mass gaming market in the region, noted S&P Global analyst Ong Hwee Yee. Pointing out that gaming as a product has high stickiness, she said: 'Affluent players may be less exposed to a weakening economy than the lower-income groups... Players return and remain engaged.' In particular, gross gaming revenue (GGR) in Singapore, Malaysia and the Philippines is expected to approach, or even surpass, pre-pandemic levels, she added. This is based on improved visitation numbers and a strong domestic market providing a boost to industry players. Moreover, the return of Chinese tourists to South-east Asia is key to this recovery, the analyst said, noting that Chinese visits to Malaysia and Singapore have reached pre-pandemic figures. Singapore had a surge in Chinese players following the introduction of visa-free travel for such tourists last February, driving a 50 per cent year-on-year increase in GGR in the first quarter of 2024, the report showed. Malaysia had introduced a similar scheme in December 2023. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Among the major operators in the region's casino sector is Malaysian hospitality giant Genting Bhd, which has a presence in Genting Highlands, Langkawi and Kijal in Malaysia, as well as Sentosa in Singapore. It is considering setting up a casino in the United States, within the state of New York – which S&P Global flags as an 'event risk' that could impact the group's overall revenues. The firm noted that Genting Bhd could establish a strong foothold in the American market if it secures a full casino licence. The new operation could also benefit from Genting Bhd's existing infrastructure and network, as it already has a local presence in the form of Resorts World New York City. However, failing to gain the licence could impede the competitiveness of the group's New York operations, S&P Global said in its report. Uneven recovery Other markets in the Asean gaming industry, such as Cambodia, are expected to have a slower recovery in GGR, Ong said. Often relying on Chinese junkets – all-inclusive trips for VIP players – casinos in these markets have suffered as Chinese authorities crack down on junket operators, which have been associated with money laundering and corruption. This has dealt a heavy blow to the Cambodian gaming market, which has long depended on these trips to draw high-stakes gamblers. Chinese junket operators accounted for about 70 per cent of Cambodia's GGR in 2019, S&P Global noted. Over in Thailand, hopes that the government would legalise casinos were dashed, as the flagship Bill of suspended prime minister Paetongtarn Shinawatra was dropped on Tuesday. The Cabinet withdrew the Bill, as it 'needs more studies that require further understanding and social context', government spokesperson Jirayu Huangsab said. Most forms of betting are illegal in the kingdom. Paetongtarn's Pheu Thai party had argued that casinos could provide a significant boost to the country's faltering tourism sector, which this year reported a significant dip in visitor numbers, contributing to the country's economic woes. Julapun Amornvivat, Thailand's deputy finance minister, said the authorities 'accept it's not the appropriate time'. 'It's a shame, the delay is a lost opportunity for the country,' he added. S&P Global's Ong said the 'market potential is massive', if Thailand were to pass such a Bill. However, the move could also threaten operations in nearby markets, she added. Enhancements to regional casino operators' existing assets could mitigate this risk, the analyst said, citing Marina Bay Sands' and Resorts World Sentosa's multibillion-dollar upgrades.
The Star
02-07-2025
- Business
- The Star
Genting releases China coal-fired power plant
Genting said the handover marked the company's strategy in moving away from further investments in coal-fired power projects. PETALING JAYA: Genting Bhd 's 49% owned indirect joint-venture company, SDIC Genting Meizhou Wan Electric Power Company Ltd (SDICG MZW), has handed over its 2x393MW subcritical coal-fired Meizhou Wan Power Plant (MZW Phase I), to Fujian Investment & Development Group Co Ltd on June 30. In a statement, Genting said the handover marked the company's strategy in moving away from further investments in coal-fired power projects, supporting its long-term commitment to building a cleaner, more sustainable energy portfolio. The MZW Phase I has been operating since Jan 1, 2004 under a 21.5-year build-operate-transfer power purchase deal. SDICG MZW will continue to own and operate the 2x1,000MW ultra supercritical coal-fired Meizhou Wan power plant (MZW Phase II) following the handover. Notably, MZW Phase II has more advanced generation technology and has been complying with all relevant environmental regulatory requirements since it started operations in 2017. Genting noted that while it will no longer pursue new coal-fired projects, it will continue to manage the operations of its existing coal-fired power assets responsibly until the end of their operational life. 'This prudent and balanced approach allows the company to manage its legacy assets responsibly,' the group said in a statement yesterday. Aligned with this strategic direction, Genting's power division remains focused on evaluating and identifying high-potential investment opportunities in the renewable and clean energy sectors that support the global energy transition. This commitment is evidenced by recent developments under the power division, including the joint venture with SDIC Power Holdings Co Ltd in the 120MWp Dongwucha aquaculture-complementary solar power plant in China. Genting Bhd's shares closed slightly higher at RM3.08 apiece yesterday.
The Star
29-05-2025
- Business
- The Star
Genting's 1Q25 revenue drops to RM6.5bil
The company said it will also include new ecotourism experiences at Genting Highlands. PETALING JAYA: Genting Bhd will introduce new facilities and attractions in an attempt to enhance Resorts World Genting's (RWG) stature as a regional tourism hub. In a filing with Bursa Malaysia, the company that mainly operates in the resorts industry said it will also include new ecotourism experiences at Genting Highlands. 'We will continue to place emphasis on driving key business segments by improving yield management systems, operational efficiencies and service delivery, while adopting prudent cost management and an agile approach to navigate the increasingly challenging operating environment,' it said. For the first quarter of this year (1Q25) Genting's revenue dropped to RM6.5bil from RM7.4bil in the previous corresponding period, while net profit fell to RM4.5mil from RM588.87mil a year earlier. The decrease was due to its leisure and hospitality segment, as well as the strengthening of the ringgit against the Singapore dollar, US dollar and British pound. Within Malaysia, RWG contributed lower revenue in the quarter under review on the back of the timing of the festive season this year and lower business volumes in the premium-players segment. In Singapore, Resorts World Sentosa registered lower revenue due to a lower VIP rolling win rate and the temporary closure of Hard Rock Hotel for renovations and rebranding work. As for its plantation segment, revenue and earnings before interest, taxes, depreciation and amortisation were higher for the quarter mainly attributable to higher palm product prices and improved sales volume for the downstream manufacturing segment. 'Palm oil prices have since eased, driven by the seasonal recovery in production and the expected buildup in palm oil stocks,' the group noted. Moving forward, the group said it will continue to be cautiously optimistic about the near-term prospects of the leisure and hospitality industry and remains positive in the longer-term. As for its UK market, the recent acquisition of Aspers Stratford in London is expected to strengthen its foothold in the city's casino market. In the United States, it will solidify its position as a market leader in the increasingly competitive New York State gaming sector. Additionally, in the Bahamas, it will drive visitation at RW Bimini by expanding its cruise strategy, which includes increasing port calls from international operators and intensifying marketing and promotional efforts. Meanwhile, the group's subsidiary Genting Malaysia Bhd (GenM) similarly saw a decrease in its revenue for 1Q25 at RM2.6bil compared to RM2.76bil in the same quarter last year. The group said revenue from Malaysia, the United Kingdom, Egypt, the United States and Bahamas's leisure and hospitality business saw a lower topline for the quarter under review. In Malaysia, a 7% decline in revenue was recorded, reflecting an industry trend that is observed in similar markets in the immediate region, particularly in the premium players segment. Its net profit however was higher at RM72.58mil compared to RM57.78mil recorded in the same quarter last year. 'The US dollar denominated borrowings gave rise to a net unrealised foreign exchange translation gain of RM50.4mil in 1Q25 compared with net unrealised foreign exchange translation losses of RM130mil in 1Q24,' it said.
The Star
29-05-2025
- Business
- The Star
Genting to introduce new facilities and attractions at Resorts World Genting
PETALING JAYA: Genting Bhd will introduce new facilities and attractions in an attempt to enhance Resorts World Genting's (RWG) stature as a regional tourism hub. In a filing to Bursa Malaysia, the company that mainly operates in the resorts industry said it will also include new ecotourism experiences at Genting Highlands. 'We will continue to place emphasis on driving key business segments by improving yield management systems, operational efficiencies and service delivery, while adopting prudent cost management and an agile approach to navigate the increasingly challenging operating environment,' it said. For the first quarter ended March 31, 2025 (1Q2025) Genting's revenue dropped to RM6.5bil from RM7.4bil in the previous corresponding period, while net profit fell to RM4.5mil from RM588.87mil a year earlier. The decrease was due to its leisure and hospitality segment, as well as the strengthening of the ringgit against the Singapore dollar, US dollar and British pounds. Within Malaysia, its RWG contributed lower revenue in the quarter under review on the back of timing of the festive season and lower business volumes in the premium players segment. In Singapore, Resorts World Sentosa registered a lower revenue due to a lower VIP rolling win rate and the temporary closure of Hard Rock Hotel for renovations and rebranding works. As for its plantation segment, revenue and earnings before interest, taxes, depreciation, and amortisation were higher for this quarter mainly attributable to higher palm product prices and improved sales volume at the downstream manufacturing segment. 'Palm oil prices have since eased, driven by the seasonal recovery in production and the expected buildup in palm oil stocks,' the group noted. Moving forward, the group said it will continue to be cautiously optimistic of the near-term prospects of the leisure and hospitality industry and remains positive in the longer-term. As for its UK market, the recent acquisition of Aspers Stratford in London is expected to strengthen its foothold in the city's casino market. For the US, it will solidify its position as a market leader in the increasingly competitive New York State gaming sector. Additionally, in the Bahamas, it will drive visitation at RW Bimini by expanding its cruise strategy, which includes increasing port calls from international operators and intensifying marketing and promotional efforts. Meanwhile, the group's subsidiary Genting Malaysia Bhd (GENM) similarly saw a decrease in its revenue for 1Q2025 at RM2.6bil compared to RM2.76bil in the same quarter last year. The group said revenue from Malaysia, UK, Egypt, US and Bahamas's leisure and hospitality business saw a lesser topline for the quarter under review. In Malaysia, a 7% decline in revenue was recorded, reflecting an industry trend that is observed in similar markets in the immediate region, particularly in the premium players segment. Its net profit however was higher at RM72.58mil compared to RM57.78mil recorded in the same quarter last year. 'The US dollar denominated borrowings gave rise to a net unrealised foreign exchange translation gain of RM50.4mil in 1Q2025 compared with net unrealised foreign exchange translation losses of RM130mil in 1Q2024,' it said. Moving forward, GENM said recovery is anticipated to be uneven across regions, causing the regional gaming market to face some challenges.
The Star
11-05-2025
- Business
- The Star
Weighing the odds for Genting Malaysia
ONCE a preferred pick among institutional and retail investors, Genting Malaysia Bhd seems to be on a losing streak with its share price under pressure from soft earnings, rising debt and renewed governance concerns. This sentiment was underscored by the stock's removal – along with parent Genting Bhd – from the FBM KLCI benchmark index at the end of last year.
