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Seem selling the Empire non-gaming assets and use proceed to buy 1,554.6 acres land and repay US300 mil bond at 7.75% would save Empire yearly interest of US23mil+ and having surplus of US10 mil+ for working capital. Good sign to heading to more operational efficiency.
I am thinking good for US economy, employments and contribution to education but not GenM. RW Catskills and RW Hudson Valley (45 mins apart) and RW NYC is 2.5 hrs away from RW Catskills. Bound to have cannibalization in terms of footfall traffic. Selling non-gaming business for RW Catskills is not good enough. With high debt for GenM, it requires strong cash flow and it has been struggling for sometime now.
Ya, at least reduce debts level and improve working capital rather than keep require GemM injection. If able to divest Miami assets will be greater effects on GenM cash flow to focus expansion once successful bid for the New York full gaming license. Anyway, need time.
Takes time indeed, Kyory. Somehow, it feels like GenM's US segment is in survival mode rather than pursuing growth. Looking at different peers in the US and their growth strategies typically focuses on new revenue streams (online gaming), property upgrades and going into markets that are less restrictive due to shift in consumer behaviors.
Ya, nothing we can do. Hope they slowly consolidate selling non core assets, reducing debts, focus more on high margin gaming and diversify more contribution from Power and Gas division which both Indonesia LNG and China Power once commence could contribute to additional RM600 to RM700 million profit for Genting yearly by 2027
yup. as for RWNYC, I hope the BODs are keeping an eye on the progress of NYC online gaming legislation which is a threat to physical casinos. LVS pulled out from the bid due to the NYC online gaming legislation.
GenM did not disclose the financial details of the Empire land lease deal with SCRFLDC, teh. It seems to be the case whereby Empire bought the land where its assets (gaming and non-gaming) are located from EPR Properties and then immediately sold the non-gaming assets (including the land the non-gaming assets are located) to SCRFLDC and then signed a lease deal with SCRFLC and mgmt agreement to manage the non-gaming assets for SCRFLDC. land lease will be a liability while managing the non gaming assets will generate revenue of management fees.
US$724.4 million capital injection into Empire Resorts since 2019; extracted from an article published by The Edge back in May titled Bursa grills Genting Malaysia over US$41m Empire Resorts buyout
Surprising indeed, Vin. But, this also means that Gent has room to rebound starting Q4 with the Laurus launching, RWLV summer marketing promotions and hopefully no sin tax from budget 2026?
don't think sin tax will increase again during this budget... but just to worry this coming QE...RWLV reports look weak again.. other than that should be fine... since forex gain and land sales from genp will definitely boost higher profits
true. have to wait for RWLV results as its tough to anticipate for Q2. Just like Wynn Resorts positive surprise results from Las Vegas despite tourist visitation to Las Vegas showing lower numbers in Q2.
