Genting could operate Resort World Las Vegas
Affin Hwang Capital analysts forecast Genting Malaysia could become the operator of the Resorts World Las Vegas, which will open late next year.
US.- Nevada will soon see a brand new resort opening in The Strip. According to Affin Hwang Capital, Genting Malaysia could take over it, as the Resort World Las Vegas gets ready.
Analysts revealed on The Edge Financial Daily that the US$4 billion resort could end under their control. That would help them overturn negative results in their business from the Resorts World Catskills, New York and Bimini.
“Investors would be eager for Genting Malaysia’s management to turn around RWC as soon as possible. The total invested amount may be higher as an equity injection of about US$200 million to US$250 million is still needed to refinance some of RWC’s debt.”
“Although Genting Bhd is the owner of Resort World Las Vegas, we believe that there is a possibility that Genting Malaysia could play a role in the casino once it is completed. Most likely as an operator of the casino.”
Tax hikes
Recent changes for casino regulations included some Malaysian tax hikes that worried the industry. However, according to recent reports, their impact was less harmful than analysts had expected.
In June, Genting Malaysia Bhd announced its decision to withdraw a judicial review against the Malaysian government. Genting’s Malaysian lawsuit challenged a decision over promised tax incentives for its multi-billion-dollar revamp plan for the Resorts World Genting.
The developments had worried the segment, but analysts say it shouldn’t be a major worry. According to experts, it doesn’t change the total tax allowance which means its impact will be less harmful than expected.
Genting Malaysia’s 26% decline in net profit during the first quarter of 2019. It posted €54.2 million due to an overall lower volume of business in its gaming segment.
