The research house said on Friday ENM’s Outdoor Theme Park will also incorporate non-Fox intellectual properties going forward.
“Details are lacking at this point in time. Nonetheless, we view this development positively. We gather all eyes will be on the 2Q19 results conference call scheduled for 29 Aug 2019 for more details on this development. Until then, we maintain our earnings estimates, RM3.80 sum-of-parts based TP and Buy call,” it said.
To recap, GENM and Fox/Disney entered into a settlement agreement that fully resolves their dispute, including the dismissal of all pending legal actions, claims and counterclaims in the US District Court for the Central District of California.
Furthermore, both parties entered into a restated Memorandum of Agreement dated 25 Jul 2019 granting GENM a license to use certain Fox intellectual properties (IP) in the former’s Outdoor Theme Park at Resorts World Genting (RWG),” it said.
GENM is currently updating its development and construction plans to complete the Outdoor Theme Park utilising both Fox and non-Fox IP.
“The Outdoor Theme Park shall also be renamed, as the incorporation of non-Fox IP implies to us that the Outdoor Theme Park cannot reassume its previous name, 20th Century Fox World. Other than the above, no other details were made available in the Bursa Malaysia announcement. Nonetheless, we are pleased that the GENMFox/ Disney impasse has been resolved,” it said.
Maybank Research said GENM will likely report 2Q19 results on Aug 29. Other than 2Q19 earnings, the investment community would like to know, amongst other things: (i) capex commitment – will GENM have to invest more to incorporate non-Fox IP into the Outdoor Theme Park; and (ii) royalty rate – how will GENM share ticket and merchandise sales derived from the Outdoor Theme Park with Fox and the non-Fox party/parties.
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