Maybank Kim Eng says it is excited about Resorts World Genting’s premium mass-focused Sky Plaza casino, opening in mid-2016, forecasting such a market could boost Genting Malaysia’s profit by MYR150 million ($39.3 million) per year.
The research house said in a note that for every 10 percentage point share of gross gaming revenue migrated from VIP to premium mass RWG will boost group core net profit by MYR150m per year.
“This segment will also benefit if Mainland Chinese individuals are granted visa-free access into Malaysia,” the note says.
The note adds that operations at RWG are stable despite the 6 percent Goods and Services Tax introduced in Malaysia on April 1, 2015.
"On its existing operations...the GST impact on Resorts World Genting gaming revenue has been manageable."
Other positives Maybank cites is that phase 1 of the Genting Integrated Tourism Plan is on track for full completion by end-2016 and the 423-room Theme Park Hotel at RWG will also return by then.
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