Opening in phases starting this year
Genting Malaysia is putting its money where its mouth is when it comes to its flagship Resorts World resort in Kuala Lumpur. The Malaysian casino giant has announced it is doubling down on the Genting Integrated Tourism Plan, boosting the total value of the multi-phase project from almost RM5 billion (US$1.2 billion) to an estimated RM10.38 billion ($US $2.46 billion).
The 10-year plan is being carried out in phases, and “will offer an extensive and wide array of new and exciting entertainment options, unique to visitors from across the region,” the casino firm said in its latest filing to Bursa Malaysia. Phase I of the development, first announced in 2013, will include a new cable car system, the Sky Avenue and Sky Plaza shopping malls, and a multi-story parking garage, all expected to open over the course of 2016. It will also include the world’s first Twentieth Century Fox World theme park, which is expected to cost RM2 billion and open in 2017. Phase II will see the addition of luxury hotels at Resorts World and a 10,000-seat entertainment arena, according to the Malaysian Sun Daily newspaper. The new 1,300-room First World Hotel Tower opened last June 2015.
While Genting is clearly confident in the potential of its property, GGRAsia cited a note from Samuel Yin Shao Yang of Maybank IB Research saying, “At this juncture, we are unsure if such a large investment will be worthwhile.”
Genting Malaysia clearly disagrees. “These developments, to be undertaken over the next few years, will progress in tandem with the dynamic economic environment and market demands,” the company said in a statement. “Once completed, the group anticipates that the GITP would elevate Resorts World Genting’s position as a major tourism attraction and the destination of choice in the region.”
Genting Malaysia just posted an 11 percent year-on-year increase in total revenue for the fourth quarter of 2015. EBITDA was down 14 percent, but net profits increased 9 percent. For all of 2015, total revenues rose 2 percent to MYR8.40 billion over 2014. Adjusted EBITDA went up 3 percent to MYR2.31 billion. Annual net profit increased by 6 percent to MYR1.26 billion.
In addition to its home base in Malaysia, the firm operates casinos in the United States, the Bahamas and the United Kingdom. “The fourth-quarter 2015 results and dividends outperformed our expectations,” said Yin. “Going forward, we are sanguine on Genting U.K. and Resorts World Bimini In fact, we gather that Resorts World Bimini may finally break even soon.”
