CASINO

Genting Malaysia earnings to rebound in 2018: Maybank

TAGs: Datuk Lim Chee Wah, Genting, Genting Malaysia, Tan Sri Lim Kok Thay

Malaysia-listed conglomerate Genting Malaysia Bhd may see its profits rise in 2018 on the back of stabilizing VIP win rates and gaming volumes at its Malaysian casino, according to analysts.

Genting Malaysia earnings to rebound in 2018: MaybankCiting recent Maybank research, The Star Online reported that Resorts World Genting‘s (RWG) VIP gross gaming revenue (GGR) may climb 24 percent this year while its mass market GGR may grow 14 percent, depending on win rate and gaming volume, which Maybank expects to “normalize” this year.

Genting Singapore, meanwhile, will also enjoy robust earnings this year as the Resorts World Sentosa (RWS) casino shifts from cost rationalization in 2017 to VIP market recovery in 2018, according to Maybank.

The Malaysian-based brokerage raised its forecast for RWS, predicting that the casino operator will overtake Singapore rival Marina Bay Sands (MBS) in terms of market share due to a favorable foreign exchange rate.

Maybank raised its RWS’ VIP volume growth forecast to 5 percent this year while maintaining 5 percent for 2019.

“While we maintain our Singapore mass market GGR growth forecast of -2% for 2017, +0% for 2018 and +5% for 2019, we do not discount the possibility that RWS may regain market share at the expense of MBS due to the recovering MYR/SGD exchange rate,” Maybank said, according to the report.

The rosy Genting picture that Maybank painted, however, couldn’t hide the troubles that had been brewing within the company.

According to a Malay Mail Online report, the three grandchildren of Genting Group founder Tan Sri Lim Goh Tong sued Genting chairman and chief executive Tan Sri Lim Kok Thay and Datuk Lim Chee Wah for allegedly removing them as beneficiaries of a family trust.

The dispute over the family trust has reportedly branched out into several other legal battles, such as Lim Siew Kim’s case against her brother Kok Thay over the beneficial interest in a block of Genting stock.

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