Inside Asian Gaming

41 March 2013 | INSIDE ASIAN GAMING REGIONAL BRIEFS analyst Leon Liao.“The government is putting inmore anti-corruption measures in mainland China and this is also a big risk.” Genting Reports Big Increase in Profits The Genting conglomerate overcame lower revenues from its US leisure and hospitality business to post a 220% jump in net profit for the fourth quarter. Malaysia-based Genting Bhd, whose far-flung holdings include casinos in Malaysia, Singapore, the UK and the US, reported a drop in quarterly revenue year on year from RM4.82 billion to RM4.49 billion (US$1.55 billion/HK$11.2 billion). Pre-tax profit for the group on continuing operations was down 22% to RM1.35 billion. Profit surged, however, to RM2.48 billion ($798.5 million/HK$6.18 billion). Full-year net profit rose to RM3.98 billion ($1.28 billion/HK$9.93 billion) from RM2.87 billion, overcoming a decline in total revenues from RM18.58 billion to RM17.26 billion ($5.56 billion/HK$43.06 billion). The company’s Genting Malaysia unit posted a 27.6% increase in fourth-quarter net profit to RM445.69 million on the disposal of certain financial assets. Revenue for the year was down 7% to RM7.983 billion as a result of costs associated with the completion of the Resorts World New York City racetrack casino. Revenue from the leisure and hospitality business in Britain was up by RM260.5 million, largely on higher business volume at its London casino operations. Revenue from leisure and hospitality in Malaysia was up 1% due to improved volumes at Casino de Genting outside Kuala Lumpur. The board of directors has recommended a final dividend of 4.5 sen per share for the quarter. Pending the board’s approval, total dividends for 2012 will amount to eight sen per share. Wynn May Require More Financing for Cotai Wynn Macau parent Wynn Resorts says it might need to borrow more money to fund its US$4 billion Cotai resort. “As our project budget is an estimate only as of the date of this report,wemayrequireadditionalfinancingtocompleteconstruction,” the LasVegas-based company said in a report announcing its financial results for 2012. Wynn Resorts also admitted that the company’s profit might drop if former director Kazuo Okada wins a lawsuit challenging the company’s purchase of his shares.The company forcibly redeemedMr Okada’s 20% stake in the company—he was its largest shareholder— after an internal investigation concluded that his activities inpursuing a casino in the Philippines placed the company at risk of violating US anti-bribery laws. Mr Okada has denied the allegations and is challenging the buyout in Nevada state court in Las Vegas. Robust Sales Power Ainsworth in First Half Ainsworth Game Technology posted a 41% increase in revenue for the six months through 31st December to A$96.5 million. Sales increases in the company’s home market of Australia were a primary driver. Comprising 69% of total revenue, they were up 29% to $66.2 million, the company reported. International revenue was $30.3 million, compared to $16.8 million in H1 2011, an 80% jump, with the key North American market, constituting 71% of sales outside Australia, contributing $21.6 million. Profit was dampened by higher taxes, however, down from $40.5 million in the prior-year period to $22 million. Pre-tax profit was up 60% to $30.1 million. The company declared an interim dividend of 3 cents per share. “The continued improved trading performance is a direct result of the group’s range of products, which continue to achieve leading product performance across global markets,” the Sydney-based supplier said. “The progression of product approvals in the Americas and other international markets is expected to position the company for continued profitability in the second half of FY13.” Nepal, Casinos Square Off Over Licensing Nepal’s Ministry of Culture, Tourism and Civil Aviation is calling on casino operators to comply with a new requirement that they renew their licenses if they want to continue to operate. The casinos have remained opened while the renewal process was delayed in the cabinet for months over the issue of back taxes and fees the government says the industry owes. In February, the Culture Ministry issued a notice instructing all the casinos to provide information about their operational and ownership status as a condition for renewal. None have complied. According to Inland Revenue Department, none of the casinos has settled its financial obligation either, which the government says is a must for license renewal, and all are operating illegally. Resorts World Genting in Malaysia Casino Shangri-la, Nepal