KUALA LUMPUR (April 9): Genting Bhd said the construction of Resorts World Last Vegas is progressing well, with the casino and resort on track to open by end 2020.
The concrete works up to Level 57 of the West Tower and Level 54 of the East Tower are completed, and the hotel towers are scheduled to reach full height (Level 68) in the third quarter of 2019, said Genting.
Genting chairman and chief executive officer Tan Sri Lim Kok Thay said this in the group’s just-released 2018 Annual Report. Resorts World Las Vegas LLC is an indirect wholly-owned subsidiary of Genting.
Lim said the total development and land costs incurred up to Dec 31, 2018 was about US$1 billion. He added that the first phase is estimated to cost about US$4 billion.
“The resort property is being built on a premier location on the Las Vegas Strip adjacent to other exciting developments, including the new Las Vegas Convention Centre expansion.”
“The Resorts World Las Vegas team will continue to work closely with contractors, engineers, materials suppliers and the local and state authorities to complete the project on schedule and within budget,” he said.
Resorts World Las Vegas has become one of Nevada State’s largest construction employers and a key contributor to the economic growth in Las Vegas with the majority of its jobs generated for the local community, Lim added.
Moving forward, Genting is “cautiously optimistic” for 2019 due to the uncertainty in the global economies, volatility in currency and commodity prices and the intensifying regional business competition given the challenging operating environment.
“Regulatory changes such as the revision of casino duties and casino license fee in Malaysia with effect from 2019 onwards, will adversely impact the financial performance of Genting Malaysia [Bhd],” said Lim, adding that the group is actively monitoring, planning and implementing strategic measures to mitigate any key business risk.
Lim said the group will continue to work diligently to ensure its existing businesses remain strong and deliver the best performance possible.
“We are a leading multinational corporation committed to enhancing shareholder value and maintaining long-term sustainable growth in our core businesses,” he said.
Turning to Genting Singapore Ltd, Lim said the company will continue to refine its marketing strategies to improve customer experience by refreshing the facilities and product offerings of Resorts World Sentosa.
“With reference to Japan Integrated Resort opportunity, Genting Singapore is looking forward to the Japanese Government publishing detailed regulations for the establishment of integrated resorts,” said Lim.
In the meantime, Genting Singapore is deploying significant resources on the ground, actively developing bid design and concepts and engaging with stakeholders to prepare for the formal bidding process, which is expected to commence in the second half of 2019, he added.
Shares of Genting closed unchanged at RM6.83 today, giving the group a market capitalisation of RM26.3 billion.