According to a Phillip Capital Research report, Genting Malaysia Bhd’s US operations should provide greater profitability in the second quarter of 2024.
The Star said that the brokerage expects that in 2023, Genting Malaysia’s gaming and leisure division in the US would contribute between 18% and 20% of the group’s sales and EBITDA.
In 2Q24, Genting Malaysia’s video gaming machine (VGM) facilities in New York, which include Resorts World New York City and Resorts World Hudson Valley, reported a combined net win growth of 5.5 percent year-over-year (y-o-y), exceeding the 4.3 percent growth of New York state. This information was highlighted by Phillip Capital Research.
Despite having only started operations in December 2022, Resorts World Hudson Valley—owned by 49 percent affiliate Empire Resorts—delivered the greatest net wins increase at 19.4% year over year on a low-base impact. VGM’s market share increased by 0.6 percentage points year over year as a consequence.
However, due to declines in the gross gaming revenue (GGR) from slots and table games, Resorts World Catskills (owned by Genting Empire Resorts) suffered a y-o-y decline in GGR of almost 8% in 2Q24.
Resorts World Catskill’s GGR is expected to be constant from quarter to quarter, hence Empire Resorts’ 2Q24 EBITDA of $3 million is anticipated to be quite comparable to 1Q24. stated Phillip Capital Research.
The US businesses, which accounted for 18 to 20 percent of Genting Malaysia’s group revenue and EBITDA in 2023, are expected to do well overall.
Viewing it as a possible re-rating catalyst for Genting Malaysia, the research firm also underlined the good news surrounding the New York State Gaming Facility Location Board’s revised schedule for the call for applications for three casino licenses.
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