Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • Nikkei

    40,369.44
    +201.37 (+0.50%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Bitcoin USD

    70,038.41
    -733.53 (-1.04%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • FTSE Bursa Malaysia

    1,536.07
    +5.47 (+0.36%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Genting Malaysia Bhd - What happened to its UK casino operations?

FRIDAY, 27 NOVEMBER 2015 - Genting Malaysia is in flux.

It is spending RM 5 bln to make its flagship Resorts World Genting bigger and more attractive, while it is paring down non-core assets such as its stake in Genting Hong Kong.

Despite its current makeover of Resorts World Genting, its operations in Malaysia are not expected to perform so well in the short term due to weak consumer sentiment in the country.

Genting Malaysia might also get hit by a tax hike for the upcoming Budget 2016. Although it is unlikely, even a 1% increase in gaming tax will negatively impact the bottom line of Genting Malaysia by 3%, according to Hong Leong.

It is also experiencing volatile business in the UK where it has to write off bad debts, and its new casino in Birmingham is expected to incur gestation costs.

What's more, it might be selling its land at a bargain price to a related party.

Now for the full story in detail, starting with their most recent earnings announcement:

Investor Central. Asian insights for global investors. We ask the tough questions of Asian companies to which global investors need answers.

Question
Question

1. What is going on at its UK casino operations?

Genting Malaysia's UK operations performed the same as in the previous quarter.

It reported lower revenue and had to write off bad debts.

Attendance fell by 3% in H1FY15 at its casinos in London.

What caused the lower attendance, and the bad business at its UK casino operations?

Who are the people who chalk up bad debts?

Question
Question

2. How much bad debt did it have to write off for UK in H1FY15?

Genting Malaysia did not disclose how much bad debts it had to write off for its UK operations.

It must have been substantial, because the bad debts it wrote off caused its UK operations to descend into an EBITDA loss of RM 99.9 mln, down from a profit of RM 38.3 mln in Q1FY15.

How much bad debt did it have to write off?

And who were the debtors?

(Read the full story to get all 8 questions)

We have invited the company to an on-camera interview, and/or to reply to our questions in writing.

At the time of publication we have not received a reply (which is why you are seeing this message).

We will update this report if we do.


Legal notice

While our purpose is to ask the questions which the man on the street would ask, and to help the everyday investor make informed investments, please note that:

Our reports and presentations ('our contents') are not investment advice nor should they be construed as investment advice or any recommendation of any kind; nor meant to cast allegations or insinuations of any kind against any individuals or entities. Before acting on the material in our contents, you should either seek independent advice tailored to your particular circumstances and intentions or rely on your own judgement.

Our reports and presentations express our observations, opinions and theoretical analysis based on the facts that we have gathered or have been provided to us. While we endeavour to ensure that our contents are accurate and are presented in good faith, we cannot and do not warrant the accuracy, adequacy or completeness of the material or that the material is suitable for its intended use; and we disclaim any such warranties express or implied that may be presumed by any party; neither do we take responsibility for the views of companies or other stakeholders or observers or sources quoted or hyperlinked in our contents. While every precaution has been taken in the preparation of our contents, we (and our principals) shall not be liable for any losses or damage or inconveniences due allegedly to errors or omissions in any facts or due allegedly to reliance on our contents in any way whatsoever; nor for any damage to any computer hardware, date information or materials allegedly caused by our contents.

All expressions of opinion and observations in our contents are subject to change without notice and we do not undertake a duty to update and supplement our contents or the information contained herein in the event we obtain any further or more complete information.

Copyright 2015 Investor Central - a service of Hong Bao Media