Genting Singapore has begun shutting down its Japanese subsidiaries following its exit from the Yokohama integrated resort (IR) race. The move comes after the city officially dropped plans to host an IR, leaving Genting’s expansion efforts in Japan without a clear path forward.
The casino operator was once seen as a leading contender for the Yokohama IR project. However, political changes altered its trajectory. After Takeharu Yamanaka was elected mayor in August—replacing Fumiko Hayashi, a supporter of the IR initiative—he promptly withdrew the city from consideration, effectively ending Genting’s prospects in the region.
As a result, Genting announced it will dissolve eight subsidiaries in Japan. The company has already initiated the liquidation process. Among them is Genting International Japan Co Ltd, a wholly owned subsidiary based in Tokyo. The remaining entities, located in Yokohama, Osaka, and other areas, were set up to handle investment holdings and manage leisure and hospitality ventures related to the anticipated IR development.
According to the announcement, the closures will not have a material impact on Genting Singapore’s net tangible assets or earnings per share for the 2021 fiscal year.
Mixed Year for Genting, But Long-Term Outlook Remains Positive
Despite the setback in Japan, analysts remain optimistic about Genting’s growth prospects. Hong Leong Investment Bank Bhd has reaffirmed its ‘Buy’ rating for the Genting Group, citing potential gains across its global operations.
Analyst Tan Kai Shuen noted that Genting stands to benefit from improving performance in the gaming, leisure, and hospitality sectors across Genting Singapore, Genting Malaysia Bhd (GenM), and Resorts World Las Vegas (RWLV).
He highlighted that Resorts World Genting (RWG) in Malaysia has seen a strong rebound in domestic visitation since the lifting of interstate travel restrictions in October. Likewise, Singapore’s gradual reopening of borders should benefit Genting Singapore, which relies heavily on international tourists.
Tan also emphasized the long-term growth potential of RWLV, which reported US$175 million in revenue and US$27 million in EBITDA for Q3 2021. While Las Vegas Strip gaming revenue dipped 21.2% in August month-over-month, it began recovering in the following months.
Meanwhile, GenM’s outlook remains positive with strong footfall at RWG and encouraging performance from its UK and US operations.
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