Genting is actively scouting markets, both local and global to expand its reach and broaden the user base. In some recent developments, Genting Malaysia Bhd, an arm of the parent Genting Group, is seen reviewing its investment opportunities. This is after this arm failed to get the second casino licence in New York late last year.
With the weakening ringitt putting pressure on dollar-denominated investments and draining huge amount of earnings towards paying up dollar loans, it is expected that the company for now will train its guns more on gains from Malaysia internally. The hope is the weakening currency will woo more tourists to Malaysia and in turn aid and abet the Casino sector’s growth.
The ringitt incidentally plummeted to a whopping 9-year low. Efforts are on to woo more users to the local casino and improve revenue outlook by means of volume growth addition in user numbers.
Genting Malaysia’s last year’s revenue saw a significant dip in trend with the waning number of users across casinos in Malaysia. Speaking at the annual general meeting recently, the Chairman also outlined the various measures the company envisages to drive growth.
Focus On Future
Furthering growth in the already existing New York Casino, Resort World Casino is high up on the agenda with many measures beginning to be taken to cut cost at this particular venue. The company is also looking at automated machines to save on labour cost. Meanwhile, the hope is that this facility will start seeing the advantage of these operational benefits from as early as 2016 or next year.
Market analysts are of the opinion that the company’s prospects remain positive and reflect strong valuations coupled with attractive fundamentals. The stock, however, has not been faring too well given the ringitt worries and overall frail global economic situation and the challenges internally for the company.