Monday , March 1 2021

Higher duties to press on Genting's ebitda: Moody & s



PETALING JAYA: BHD Genting's earnings before interest, taxes, depreciation and amortization (ebitda) are expected to fall by around £ 650 million in 2019 under a stressful situation, where additional 10% casino duties on gambling revenues start from January 1, 2019, he says Moody Investors Service.

The tax agency said that the increase in taxes, fees and levies in the gaming industry published in the 2019 Budget was negatively credited to the group as the changes, in particular the increase in casino duties of up to 35% causes a reduction in the contribution of earnings from its leisure recreation and hospitality of Malaysia and as a result weakens its leverage.

Currently Genting pays casino duties of up to 25% on gambling revenues.

Moody also stated that the higher casino license fee affected the group (from RM120 million to RM150 million per annum) and a senior machine vendor's license (from RM10,000 to RM50,000 per annum).

The company noted that the expected reduction in Genting & EID will erode the likely initial gains as a result of completing its Genting Integrated Tourism Scheme (GITP) at Resorts World Genting.

GITP, which started in 2013, is a development that will enhance Resorts World Genting with additional food and drink equipment, and entertainment and retail areas; new underground theme park; and rebuilding the outdoor theme park as a World World theme theme park.

Although Genting's credit measures are predicted to weaken, Moody said he was still in the Baa1 degree parameters.

"Worthing, as measured by debt / ebitda, will be likely to increase to 3.8 times in 2019, from 3.5 times in 2018, while cash flow is likely to weaken to 12% by 13% over the same period. "

Moody added that there is a limited head to pay for debt increases until the construction of Resorts Las Vegas (RWLV) is completed and the new integrated destination is beginning to contribute to the group's earnings.

The RWLV base was carried out in May 2015 and its first phase of development is underway with the target targeted for 2020. The completed project will consist of four houses totaling 6,583 o hotel rooms.

The destination will be Genting first in Nevada. It also operates destination destinations in Malaysia, Singapore, South Korea, the United Kingdom and Bahamas, according to its website.


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