Genting Singapore

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#31
(11-08-2012, 08:57 AM)freedom Wrote: 2Q alone, Genting Singapore invested more than 1 billion in available-for-sale financial assets.

What have they bought besides Echo Entertainment(33 million share, less than 200 million)?

looking through its usage of money it raised through its rights and recent capital securities, it still have 1.1 billion left from its right issue in 2009 and 1 billion left from its recent capital securities, plus more than 1 billion available-for-sale financial assets. What's the plan for these cash?

In the last AGM, the CEO mentioned that cash reserve is crucial for bidding new projects. Potential target is Japan, Taiwan, etc. One of the criteria for bidding IR is solid cash reserve, as the projects are capital intensive.

I've read somewhere that Echo has agreed to co-operate with Crown. So probably Genting will not pursue Echo anymore.


Genting probably bought Felda (for political reason), see below:

Link

Gov’t told to explain casino firm's involvement in Felda Global listing

The BN federal government has been told to explain a report claiming casino operator Genting Berhad being allocated 407,005,000 or 12 percent shares in Felda Global Venture Holding before selling them to government-linked agencies.

Citing a Bloomberg Peers report, chairman of FELDA whistleblower group National Felda Settlers’ Children Association (ANAK) Mazlan Aliman said Tabung Haji, Employees Provident Fund (FGVH) and Kumpulan Wang Amanah Pencen (KWAP) had taken up the FGVH shares owned by Genting between July 16 to August 9.

“Why Genting sold off its shares? Is it proxy to some leaders? Why public funds were used to purchase the disposed shares?” asked Mazlan.

Mazlan earlier exposed that Louis Dreyfus and Bonge Limited, both companied linked to Jews, had been involved in FGVH.

Earlier, it was reported that KWAP had bought a whopping 64.11 million shares in FGVH on its initial public offering (IPO) debut on June 28, amounting to about 24.5 percent of the day’s total trading volume of 262 million shares.

Based on the lowest trading price of RM5.24 for the day, the transaction would have amounted up to RM335.94 million.

With the fall in price of global palm oil, speculation is rife that public funds through public institutions were used to sustain FGVH’s share price ahead of the 13th general election.

FGVH’s share price has been on a decline since the listing, dipping to RM4.99 last week before slight recovery to close at RM5.12 yesterday after reaching a peak of RM5.50.

-Harakahdaily
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#32
The Straits Times
www.straitstimes.com
Published on Feb 02, 2013
Play of the Week
Lady Luck smiling on Genting Singapore

Share price rallies on hope RWS will enjoy recovery in earnings like rival MBS

By Goh Eng Yeow Senior Correspondent

LADY Luck appears to be smiling on Genting Singapore, with its share price rallying almost 7 per cent during the week.

The reason for its lucky break? Hopes abound that its Resorts World Sentosa (RWS) will enjoy a similar recovery in quarterly earnings to that experienced by rival Marina Bay Sands (MBS).

MBS had announced that fourth quarterly operational earnings improved by 16 per cent to US$303 million (S$376 million) over the third quarter as high-rollers flocked to its casino tables.

Genting, which reports its results in three weeks, is also expected to get a boost over Chinese New Year, with more gamblers trying their luck during the festive period.

The stock surged 5.8 per cent to $1.55 on Thursday with 146.4 million shares changing hands, but succumbed to profit-taking yesterday, ending 1.6 per cent down at $1.525 on a volume of 30.4 million shares.

DBS Vickers analyst Yee Mei Hui said: "We look forward to seasonally stronger earnings in the first quarter from Chinese New Year and recovery in operating profit margin in the second quarter, as its (RWS') recently completed Western Zone ramps up more visitors."

The icing on the cake for the casino operator may be the foreign quests it plans to undertake as it deploys the massive $2.3 billion in funds it raised from selling perpetual bonds last year.

Ms Yee noted that apart from Japan and South Korea, where there have been few updates on gaming liberalisations after elections in the two countries, Genting is also eyeing the United States market, where sister company Genting Malaysia has operations in New York.

"Genting may also acquire more hotel sites after its recent acquisition in Jurong to build a four-star hotel," she added.

Still, the biggest fillip for Genting may be the spillover interest displayed by Chinese high-rollers as they fan out beyond Macau, their traditional gambling haunt, to new gaming resorts around the region.

UOB Kay Hian said in a report last week that it expects Macau's gross gaming revenues to grow by 10.6 per cent to US$42 billion, after experiencing a 13.5 per cent increase last year.

However, it is cautious about further growth in Macau's high-roller segment given the likelihood that Beijing may launch further anti-corruption measures.

But it remains hopeful that "there is potential upside in its forecast should the Chinese economy rebound strongly after the new government officials formally assume office in March".

In a report on gaming two weeks ago, Citi Investment Research was muted about Singapore casinos' prospects.

"In Singapore, we expect both Marina Bay Sands and Resorts World Sentosa to remain cautious on credit expansion, given little improvement in the economies around the region," it said.

engyeow@sph.com.sg
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#33
High-rollers from China make Singapore casinos see red
By Eveline Danubrata and Anshuman Daga
SINGAPORE, April 10 | Tue Apr 9, 2013 8:16pm EDT

(Reuters) - High-rollers get lavish treatment and hefty credit lines at Singapore's two casinos, like any other gaming house in the world. But here, more of them skip town without paying their debt, a matter of increasing concern for investors.

Three years after Singapore allowed casinos to open, Genting Singapore PLC's Resorts World Sentosa and Las Vegas Sands Corp's Marina Bay Sands have become the world's most profitable. Chinese nationals account for around half of the VIP gaming volume at their tables.

An examination of court documents by Reuters and a series of interviews with lawyers and industry executives reveal that several of the gamblers have run up millions of dollars in debt and then scampered back to China, where they are effectively untouchable.

Resorts World sued Chinese gambler Kuok Sio Kun in Singapore last year to recover S$2.2 million ($1.8 million). But more than six months on, the casino has not even managed to serve court papers to the Macau-based woman.

After several letters of demand went unanswered for months, it tapped a Singapore law firm to sue the 46-year-old, court documents show.

It then hired a Macau-based law firm, which advertised in a Chinese-language newspaper, posted the court documents at Kuok's last known address and went there twice.

"I have made all reasonable efforts and used all due means in my power to serve the court documents on the defendant, but have not been able to do so," the Macau lawyer said in the documents.

In Macau, the world's biggest gambling haven, debts are mostly handled by junket operators, who bring high rollers to casinos. Some of the 200 or so operators there have been associated with triads, or criminal gangs, which are notoriously efficient in collecting money.

Singapore only has three junket operators, which are heavily regulated and must renew their licences each year as the city-state seeks to maintain its image as a clean and safe business and tourist destination.

So, when faced with bad debts, casinos negotiate with the gamblers, and as a last resort, file suits in court. But as gambling debt is considered a civil, not criminal, issue in Singapore, gamblers who fail to pay will not be arrested.

The two casinos have sued at least three Chinese gamblers to recover millions of dollars but court documents reviewed by Reuters show they have not been able to get any money from them so far.

MULTI-MILLION DOLLAR CREDIT LINES

Singapore's two casinos had estimated combined gross gaming revenue of about $5.9 billion last year, according to industry analysts, just below the $6.2 billion pulled in by dozens of casinos on the Las Vegas strip.

"It's the volume and the level of play," said Adam Weissenberg, global leader of the travel, hospitality and leisure segment at Deloitte & Touche. "The casinos are bringing in people who have million-dollar credit lines. They are bringing in people who are playing million-dollar hands."

More than 30 casinos in Macau, a special administrative region in China, raked in $38 billion in gaming revenue in 2012.

But despite profit margins of more than 40 percent, far higher than in Macau and on the Las Vegas strip, Singapore's casinos risk more write-offs.

Genting Singapore's trade and other receivables rose by nearly one-third from a year earlier to S$959.5 million as of end-2012. Impairment loss on trade receivables was 18 percent higher at S$143 million for 2012.

"The more you start to see the increase in their receivables, what you then start to see coming through in their results later on, is possible deterioration in their earnings quality and also including cash flow generation," said Vicky Melbourne, Fitch Ratings' Asia Pacific head of industrials.

Las Vegas Sands said its overall provision for doubtful accounts rose an annual 59 percent to $239.3 million last year, with the bulk of the increase due to receivables at the Singapore casino "related to credit extended, as well as increases to provisions for specific customers."

Other gaming company analysts said the numbers were not yet a huge worry, but they were watching the increase with concern.

"The junket operators shoulder most of the credit risk and debt collection in Macau, but Singapore has a structural disadvantage of not having the junket network and presence," said Lucius Chong, an analyst at CIMB Research.

Court documents show Marina Bay Sands has filed 84 claims for at least S$250,000 each at Singapore's top court since 2010, including 62 last year and 11 as of mid-March this year. Resorts World filed 11 cases in 2012 and one in 2010. These cases relate to all manner of claims, not just gambling debts.

Marina Bay Sands did not give details of the cases. Genting Singapore declined comment.

PAINFUL PROCESS

Many of the suits filed in the Singapore court are against gamblers based in the country, but there are likely to be larger claims on Chinese high-rollers that are not pursued due to the "painful" process and the potential bad publicity, lawyers said.

Singapore does not have reciprocal enforcement of judgments with China, except for Hong Kong. This means that even if a casino obtains a judgment in a Singapore court, it also has to sue the gambler in China, they said.

"If there is a lot of gambling debt and the gambler is in China now, usually the casinos can hardly get any cooperation from the Chinese government to go after them because gambling is illegal in China," said Huang Jing, director at the Centre on Asia and Globalization at the Lee Kuan Yew School of Public Policy in Singapore, who advises China's policymakers.

Sands has described Singapore as the "most challenging credit market", citing the highly concentrated nature of the market, the small number of junket operators and very little legal help in the region to collect debt.

Resorts World gave Kuok S$200,000 in March 2010 and another S$800,000 in October. Within the next few days, it granted three more credit lines worth S$2 million, documents show.

Kuok owed the casino S$2.2 million after offsetting deposit and commission. Her application form showed that she received a reference for the initial credit facility of S$200,000.

It was not immediately known what she played at the tables, but baccarat is the game of choice for high rollers at the exclusive Crockfords Club at Resorts World and in Paiza at Marina Bay.

The key things that a casino looks at when extending credit to VIP gamblers are the player's credit history at other casinos and references, said a former executive at one of the casinos.

"Once somebody gives you that one credit line, you go anywhere, people will give it to you provided that you are on good payment terms," he said. But he noted that it was difficult to accurately assess an overseas gambler's net worth.

"Even if you have assets, if you are overseas they can't sue you, especially in China."

($1 = 1.2397 Singapore dollars) (Editing by John O'Callaghan and Raju Gopalakrishnan)

http://www.reuters.com/article/2013/04/1...KY20130410
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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#34
Casinos still earning tons of money lah. What is a few million dollars in write-offs? Lose also lose to casino what.
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#35
(11-04-2013, 02:49 PM)mulyc Wrote: Casinos still earning tons of money lah. What is a few million dollars in write-offs? Lose also lose to casino what.

Not just a few million dollars...

Quote:Genting Singapore's trade and other receivables rose by nearly one-third from a year earlier to S$959.5 million as of end-2012. Impairment loss on trade receivables was 18 percent higher at S$143 million for 2012.
.
Las Vegas Sands said its overall provision for doubtful accounts rose an annual 59 percent to $239.3 million last year, with the bulk of the increase due to receivables at the Singapore casino "related to credit extended, as well as increases to provisions for specific customers."

But, look on the bright side, the casinos didn't really lose anything tangible except for "services" provided....Tongue
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#36
what im saying is that while on paper it looks like a huge sum, dont forget that these clients gamble all their money away in the casino. so for the casino operator, it is just a case of taking out from the left pocket and going right back in to the right pocket, since whatever the client loses, the casino makes. impairment loss on trade receivables is always deceiving when in the case of casino accounting.
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#37
(11-04-2013, 04:29 PM)mulyc Wrote: what im saying is that while on paper it looks like a huge sum, dont forget that these clients gamble all their money away in the casino. so for the casino operator, it is just a case of taking out from the left pocket and going right back in to the right pocket, since whatever the client loses, the casino makes. impairment loss on trade receivables is always deceiving when in the case of casino accounting.

It is a saying that i always disagree.

Debt over gambling table is not "normal" debt, so it is OK to default. Tongue
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#38
(11-04-2013, 04:29 PM)mulyc Wrote: what im saying is that while on paper it looks like a huge sum, dont forget that these clients gamble all their money away in the casino. so for the casino operator, it is just a case of taking out from the left pocket and going right back in to the right pocket, since whatever the client loses, the casino makes. impairment loss on trade receivables is always deceiving when in the case of casino accounting.

Yup that's right. After the gambler lost all the money, the casino extend large credit to him. Again, he will lose all the credits. So I think it's alright for casino to write down on the "virtual" receivables.
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#39
it is a sneaky game these casinos play, but that's where they earn most of their money from anyway.
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#40
Genting's Japan ambitions get punters excited
Goh Eng Yeow
The Straits Times
Monday, Apr 29, 2013

SINGAPORE - Gaming operator Genting Singapore, owner of Singapore's Resorts World Sentosa (RWS), makes no secret of its ambitions to expand into Japan once casino activities are legalised there.

Its president, Mr Tan Hee Teck, flagged the intention at its annual general meeting on Thursday. He told a packed audience that "if you follow the news, it looks likely that Japan is going to liberalise casinos within six to nine months".

He said: "This is a big opportunity for us. If you look at companies which can afford to build an IR (integrated resort) of this magnitude, there are only two or three companies in the world which can do it."

Building RWS - the company's flagship casino - had cost $5 billion, but constructing a similar project in Japan is likely to cost $10 billion or more. It is a huge task which only a few casino operators such as Genting have the financial resources to undertake.

But any opening up of Japan's gaming market is likely to throw up money-spinning opportunities for casino operators as the Japanese are already avid gamblers, with a pinball-like game called pachinko generating US$200 billion (S$248 billion) in revenue a year.

Genting shares gained 5.5 cents on Thursday. On Friday, the counter rose another four cents to $1.52. This gave Genting a gain of 12.5cents, or 8.96 per cent, for the week.

Mr Tan disclosed that in anticipation of big projects, the company sits on a war chest of $5 billion, which includes the $2.3 billion it raised last year from selling a bond-like instrument known as preference shares.

"We are the only company with 28 analysts' coverage. Most institutional investors look to Genting as a growth stock. We aspire to grow this company, whether it is through acquisition or greenfield projects to enhance the value of our shares," he said

He said Genting is the only investment-grade casino operator in the world and enjoys a borrowing cost of 1.2 percentage points over benchmark interest rate the swap offer rate (SOR), as it gets access to cheap borrowings. This gives it an edge when it comes to huge casino projects that require bank financing on a massive scale.

"(Japan) would be the stock's key re-rating catalyst," said DMG & Partners Research in a recent report. Genting Singapore executive chairman Lim Kok Thay also held out the promise of a higher dividend once the company's cashflow has stabilised, after some shareholders flagged their unhappiness over the one-cent dividend payout. He said: "As soon as we can declare a higher dividend, we will do so."

Macau casinos have made it a point to reward their shareholders with handsome cash dividends. "In Singapore, we hope to be able to do the same thing and declare lots of dividends. There is a major shareholder here and his interests are aligned with your interests," he told shareholders.

But Mr Lim also stressed the need for prudence. He said: "We don't want to declare all our cash out. We still owe the banks, so if our results come out worse than expected, we will need to repay. Otherwise, instead of paying 1.2 per cent over SOR, they will want us to pay 5 or 6 per cent."

He said the key to a higher dividend is "the more we make, the more we save, the more the management runs the company for the benefit of all shareholders".

http://business.asiaone.com/news/genting...rs-excited
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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