Phillip Capital Research said GenM has reopened less than a third of the previous total floor space of the former Genting Casino.
PETALING JAYA: The gradual reopening of casino floor space at Resorts World Genting complex in Genting Highlands will support an improvement in the financial performance of Genting Malaysia Bhd
(GenM), according to Phillip Capital Research.
The research house stated GenM has reopened less than a third of the previous total floor space of the former Genting Casino. It is expected to progressively reopen more floor space going into the Lunar New Year period.
The overall casino area is collectively referred to as Genting Casino, consisting of Genting Casino 1 (Circus Palace) and Genting Casino 2 (Hollywood).
“Only Genting Casino 2 is operational and open to the mass market, while most of Genting Casino 1 remains closed to the public. We could not confirm the exact floor space as some areas appeared larger than indicated on the map.
“However, we estimate that less than one third of the former casino floor space is open to the public,” Phillip Capital stated in a report following a recent visit to the facility.
The casino is prioritising rapid completion of additional floor space in preparation for the upcoming Lunar New Year festivities.
Meanwhile, the group’s US portfolio, which contributes 17% to 20% of the group’s pre-tax profit continues to face challenges.
Its Resorts World Catskills casino saw a modest 1% year-on-year (y-o-y) increase in gross gaming revenue (GGR) for the fourth quarter of 2024 (4Q24) but declined by 11% quarter-on-quarter due to seasonal factors.
Total GGR for the full year fell 2% on-year, the research house stated.
GenM’s video lottery terminals (VLT) in New York, including Resorts World New York City and Resorts World Hudson Valley, reported a 5.1% y-o-y net win growth in 4Q24, but it is trailing behind New York state’s overall growth of 5.7% y-o-y.
However for 2024, the VLT facilities outpaced the industry growth of 3.5% with a 4.1% y-o-y growth to raise its market share to 43.5%.
Phillip Capital has maintained a “buy” call on GenM with an unchanged target price of RM3.30 a share.
