According to analysts in the gaming industry, Malaysian tax hikes weren’t as harmful as the consensus had expected.
Malaysia.- 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.
“Although the casino numbers missed our optimistic estimates, they were better than the consensus. Both Genting Malaysia and Genting Singapore’s earnings for 1Q19 were better sequentially owing to a better luck factor with improved business volume for the premium business,” Kenanga Research analysts said.
After the company published the results, shares in Genting Bhd and Genting Malaysia went up