Genting Malaysia Revenue Forecasts Cut After Theme Park Delay

Genting Malaysia Revenue Forecasts Cut After Theme Park Delay

Analysts have slashed their revenue predictions for casino operator Genting Malaysia after it announced that there would be a delay in the opening of its much-anticipated theme park which is being developed at its flagship Resorts World Genting in Malaysia.

The 20th Century Fox World Malaysia, a Hollywood-themed amusement facility is now expected to open in the second half of 2018 instead of the second quarter as announced earlier. Brokerage firm Affin Hwang Investment Bank Bhd, said that the delay in opening of the theme park is likely to affect overall revenues and consequently slashed the revenue projection of the group for 2018 and 2019.

The analysts are however hopeful of strong topline growth on the back of the host of new amenities that have been opened as a part of a major upgradation project. The range of new facilities include a new mass gaming area, shopping and dining facilities as well as a high speed cable car system.

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In a statement Ng Chi Hoong analyst with Affin Hwang said

New facilities have the ability to drive higher visitation growth. This is well reflected post the opening of the Genting Premium Outlet in second quarter 2017, whereby visitation growth [that quarter] is up 8 percent year-on- year, relative to the 3 percent decline in first quarter 2017

Genting Premium Outlet is a shopping facility at Resorts World Genting featuring exclusive retail brands. Japanese brokerage Nomura has similarly stated that the new facilities were having an impact pointing out that revenue was up 7 percent on a quarter-on- quarter basis for the Malaysian unit.

Analysts with the firm have further predicted a revenue upswing, when a new VIP gaming area opens in September and a hotel with 500 rooms opens by the end of the year. However analysts have also raised concerns that the operating costs particularly utilities and payroll were harming profitability with the unit’s adjusted EBITDA [earnings before interest, taxation, depreciation and amortization] going down by 5 percent to around 30 percent.

Net profit for Genting Malaysia was down by almost 60 percent year-on-year in the second quarter of 2017. The major makeover of facilities is being carried out under the RM10 billion Genting Integrated Tourism Plan (GITP) which seeks to overhaul and expand the casino’s facilities and amenities in a major way over a 10 year period. Genting Malaysia also operates Resorts World Bimini – Bahamas and Resorts World Casino New York City.

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888 Holdings Revenue Goes Up by 9% in the First Half of 2017

888 Holdings Revenue Goes Up by 9% in the First Half of 2017

888 Holdings enjoy good results in H1 2017

888 Holdings reveal strong results in the first half of the year.

Gibraltar-based online gaming company 888 Holdings, has announced its semi-annual results, which reveal a year-on-year increase of 9%.

The company, which owns and operates a number of casino, poker, sport and bingo brands, recorded revenue of $ 270.1 million, $ 8.1 million more when compared to the first six months of the last year.

Strong Core Vertical

The biggest year-on-year growth of 11% and 45% was recorded in the company’s casino and sports betting divisions, while the poker division’s results were far lower, albeit still up. However, a year-on-year increase of only 1% wasn’t as expected.

Holdings’ consumer facing operations went up by 11%, while business to business offering recorded a drop of 6% to $ 27.5 million.

The company’s adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) during the first half of this year was $ 47.6 million, which is 8% more than during the same period of 2016.

The adjusted profits before tax recorded an improvement of around 12%. $ 37.6 million in the first six months is just under $ 4 million more than 888 Holding recorded last year. On the other hand, loss before tax was $ 17.3 million, a significant drop from the 2016 results when the company recorded profits of $ 27.8 million. According to reports, the main reason behind such dismal performance during this period were exceptional charges of $ 50.8 million.

These results were published only a week after 888 Holdings was fined by the United Kingdom Gambling Commission (UKGC). After the investigation reveal significant oversight in the company’s treatment of problem gambling, UKGC issued a £7.8 million fine.

Building on Momentum

Itai Frieberger, 888’s Chief Executive Officer, said the company had delivered further revenue growth and operational progress in H1 2017, resulting in a 9% increase in revenue.

He added such a pleasing outcome had been driven by continued growth in 888’s core Casino division, strong momentum in the fast-growing 888Sport and a good performance in Poker division.

Frieberger stated the company’s Board remained confident that 888 would achieve further progress and deliver its expectations for the full year.

AC Casino Revenue Falls, Online Gambling Revenue Grows In NJ

AC Casino Revenue Falls, Online Gambling Revenue Grows In NJ

The combined casino revenue in Atlantic City has shown a decline of 2.7 percent for July 2017 when compared to the same period last year.

This was despite the fact that the city’s seven operational casinos have recorded a marginal revenue increase according to the latest report released by the New Jersey Division of Gaming Enforcement.

Casinos have seen an increase of 3.9 percent in their gross gaming revenue which includes a jump of 18.5 percent in internet gambling.

Matthew Levinson, chairman of the Casino Control Commission said that the trend was clearly one of growth and that it would continue building in the coming months. He pointed out that there was one less weekend in July 2017 when compared to July 2016.

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The biggest gainer last month was Resorts Casino & Hotel which posted an increase of 14.4 percent to reach $ 20.4 million. Tropicana follows with a 13 percent revenue increase to hit $ 37.5 million. Three other casinos namely Caesars, Bally’s and Harrah’s have all registered modest increases. Casino revenue for Bally’s for July 2017 was $ 22.8 million, up by 5.3 percent over July 2016. Caesars was up 4.8 percent over last year to reach $ 32.7 million while Harrah’s was up 7 percent to reach $ 36.6 million.

In terms of gambling revenue, the Borgata retained the top spot with $ 76.3 million but registered a decline over of $ 80.3 million when compared to its July 2016 revenue. Golden Nugget also recorded a small drop of 2.6 percent in revenue, reaching $ 20.8 million.

Among the internet gaming-only operations, Caesars Interactive-NJ was down 5.4 percent to reach $ 3.2 million but Resorts Digital was up by a sharp 22.9 percent to hit $ 3.8 million. Resorts Digital is a partnership between PokerStars and the brick-and-mortar Resorts Casino & Hotel.

Golden Nugget Atlantic City was on top with $ 6.25 million in gross revenue and became the first internet gaming operator to cross $ 125 million in terms of lifetime revenue from just online casino games.

On the whole online gaming revenue for July 2017 was $ 20.6 million which helped the industry pass the important milestone of $ 600 million by way of lifetime earnings. July also became the fifth month for New Jersey’s online casinos recording monthly gross gaming revenue of over $ 20 million. Cumulatively, the sector has so far generated tax revenue of $ 108.1 million since 2013 when online gaming was legalized.

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Spanish Online Gambling Revenue Up in Q2 2017

Spanish Online Gambling Revenue Up in Q2 2017

Gambling in Spain on the rise

Spanish gaming market enjoys good results in Q2 2017.

After a very successful first three months of the year, when Spanish online gambling market recorded a 20% rise in revenue, recently revealed numbers showed the growth continued in the second quarter of 2017.

The data published by the Spanish national gaming authority, Dirección General de Ordenación del Juego (DGOJ), reveal licensed gambling web sites recorded €121.3 million in revenue, during the period from April 1 to June 30.

Unusual Trend on the Market

This is a 22.6% year-on-year increase, but when compared to the first quarter of 2017, it’s a drop of 4.5%.

These year-on-year revenue jumps and sequential drops are slowly becoming a trend, since the similar pattern can be seen in the Q1 results, which were higher than in Q1 2016, but were 2.4% down when compared to the last quarter of 2016.

Sports betting earned €60.1 million, 12.3% more revenue than in the same period of last year. This is an excellent result, especially when you bear in mind the fact that European Football Championship was well under way during the Q2 2016. The aforementioned trend continues here, since the results are 15% less than in Q1, when sports betting recorded €70.6 million.

70% of all betting stakes during the quarter were made through live betting, which also accounts for 68.5% of the quarterly revenue.

Casino revenue recorded both year-on-year and sequential rise. €42.9 million represents an increase of 52.5% when compared with Q2 2016, or 14.5%  when compared to the first three months of this year. Slot machine revenue went up by staggering 84% to €21.5 million, live roulette jumped to €9.5 million, while RNG roulette improved by 11.5% (€6.8 million).

Last Chance For Poker?

Online poker also followed the trend. €14.4 million were 5% more year-on-year, but 5% less than in Q1 2017. Cash games were 5.5% down from the same period last year, but tournament entry fee went up by 16.5%.

A further decline of Spanish poker cash game could be stopped if the long-overdue deal to share poker liquidity goes through. Licensed operators in France, Italy, Portugal and, of course, Spain would join together, but the move is yet to be completed. French regulator ARJEL invited its licensees to apply for liquidity sharing, but there has been no action from the Spanish side.

Finally, the numbers show that there were 646,000 active online gambling users in the second quarter, which is 7% more than in Q2 2016.