In its financial statements for the three month period ended 31 March 2009, published earlier this month, Genting Singapore PLC – formerly Genting International PLC – said ‘the general UK economy is poor and the economic outlook is uncertain as shown by sharp declines in the main economic indicators. The economic slowdown has had and is expected to continue to have a material impact on disposable income for some time. As a result the trading revenue of the UK casino operations have been and will continue to be adversely affected’.

The Genting Group also commented that the increasing tax on poker profits from 15% to as high as 50% and increased rates on all categories of amusement machine licence duty from 22 April 2009 will have a negative effect on profit performance of the industry and of the Genting. The company estimates the overall impact this year will be in the region of £1.2 million. For the three month period revenue from the Group’s UK casino operations was down by £25.5 million from the same period in 2008.

Despite this, Genting Singapore today saw its stock jump to its highest level in two years amidst optimism that its profits will be boosted by its Resorts World at Sentosa development in Singapore. The US$4.56 billion project will have Southeast Asia’s first Universal Studios theme park as well as a casino and other attractions, which investors hope will boost company profits.

Genting states, ‘In the course of the past year, changes have been made to the design and architecture of the integrated resort to substantially improve its entertainment and fun offerings, including enhancements to the casino and Universal Studios Singapore.’ The resort is scheduled to have a soft opening in early 2010 with the casino, 4 hotels - Maxims Tower, Hotel Michael, Festive Hotel and Hard Rock Hotel - the Le Vie Theatre, a 7,300-seat ballroom, and Universal Studios Singapore. (E-05.22.09)

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