Selling HK investment to fund expansions
Resorts World New York City is the most profitable racino in the United States, bar none, with $792 million in revenue for the fiscal year that ended in March 2014. But when state regulators awarded a handful of new casino resort licenses in the state, Genting lost out.
After losing out on the license and seeing a slight decrease in slot revenues at Resorts World NYC, the Malaysia-based gaming company is looking to streamline its investment at the property in Queens borough. It is also looking at opportunities elsewhere, including the U.K., where it is developing a casino resort in Birmingham.
According to GGRAsia, Genting Chairman and Chief Executive Lim Kok Thay says cost-cutting is needed in New York because “there was an increase in expenses due to redundancies that cost a fair bit.” The fees to apply for two casino licenses upstate, which amounted to MYR98.2 million (US$26.2 million), were written off in 2014, he added.
Meanwhile, Resorts World Birmingham is scheduled to open in the second half of 2015, joining more than 40 casino outlets owned by Genting in the U.K. Its new GBP150 million (US$229.2 million) property Resorts World Birmingham will have about 30 gaming tables and 150 slot machines, along with sports betting and bingo.
The company is also reshuffling its investments around the world. Last year, Genting Malaysia saw net profits fall more than 25 percent year-on-year, “mainly due to lower contribution from the Malaysian market,” reported GGRAsia. It said it could raise US$472.2 million from a proposed sale of its 17.81 percent interest in casino ship operator and Philippines casino investor Genting Hong Kong Ltd. The firm plans to use the funds to “pursue other core investments” and to redevelop Resorts World Genting in its home base of Malaysia.
