20th Century-Fox plan to pay off
Genting Malaysia Berhad will not see any negative impact from an oversupply of gaming in the region because it is “less reliant on VIPs,” said Morgan Stanley in a note last month.
“Genting Malaysia earnings have traditionally been driven by mass players, rather than VIP players, hence profitability of its Malaysia operations is the highest among regional peers,” said the note from analysts Xin Jin Ling, Praveen Choudhary and Wayne Lau and published in the Asia Gaming Brief. “Based on our forecast, mass/premium mass players will continue to contribute 55 percent of the revenue. Currently, 70 percent of Genting Malaysia visitors are day-trippers and this could increase with the new cable car system.”
Resorts World Genting is located at Genting Highlands, a popular resort area several hours from the Malaysian capital of Kuala Lumpur.
The brokerage forecast 15 percent EBITDA compound annual growth rate for Genting Malaysia from 2015 through 2018 on the opening of Genting’s Integrated Tourism Plan, a major upgrade of its facilities in Malaysia that will include 1,550 hotel rooms, the Sky Avenue “lifestyle mall” and the 20th Century-Fox World theme park. Morgan Stanley forecast a 54 percent rise in visitors by 2020.
In February, Genting Malaysia announced that it would be doubling its investment under the development plan for Genting Highlands.
