Genting said that the construction of Resorts World Las Vegas is progressing well, with the casino and resort on track to open by end 2020. Moving forward, Genting is “cautiously optimistic” for 2019, adding that the group is actively monitoring, planning and implementing strategic measures to mitigate any key business risk.

Resorts World Las Vegas, and Genting’s Outlook

Genting said in its just-released 2018 Annual Report that the construction of Resorts World Las Vegas is progressing well, with the casino and resort look set to open by end 2020. Resorts World Las Vegas LLC is an indirect wholly-owned subsidiary of Genting. Concrete works up to level 57 of the West Tower and level 54 of the East Tower are completed, with the hotel towers scheduled to reach the full height of level 68 in the third quarter of 2019.

Tan Sri Lim Kok Thay, Genting chairman and chief executive officer, said that the total development and land costs incurred about USD1bil. for the period up to 31 December 2018, and that the first phase is expected to cost about USD4bil. Lim said further that the resort property is built on a premier location on the Las Vegas Strip, and is adjacent to other exciting developments, such as the new Las Vegas Convention Centre expansion. Resorts World Las Vegas has become one of Nevada State’s largest construction employers and a key contributor to Las Vegas’ economic growth.

Genting said that it is “cautiously optimistic” for 2019 in view of the uncertainty in global economies, volatility in currency and commodity prices, and intensifying regional business competition, in view of the challenging operating environment.

Lim said that the group is actively monitoring, planning and implementing strategic measures to mitigate any key business risk, and that they will continue to work diligently to ensure its existing businesses remain strong to and deliver the best performance possible.

Genting Shares Continue to Seesaw

Genting was a big loser at the Budget 2019, as the government decided to raise casino duties and licensing fees. Since the announcement, Genting shares dipped 16.9% over November and December 2018 to end the year at RM6.10. However, the shares picked up over the first two months of 2019, a welcomed breather after being hammered down for the most part of 2018. The shares peaked at RM7.60 (21 Feb), before reversing to hit RM6.60 (1 Apr).

The shares have continued to be volatile last week, swinging to close as high as RM6.95 (3 Apr). Genting’s share price closed unchanged at RM6.83 yesterday (9 Apr).

Source: Macquarie Research - 10 Apr 2019