Genting Malaysia Injects Another 100 Million Dollars Into New York Operations
Posted on December 9, 2022 | 1:59 pm
Genting Malaysia, the powerful global leisure and hospitality company, has decided to make another cash injection into Empire Resorts, its subsidiary that operates in New York.
The investment is worth 100 million dollars, taking the total amount invested by Genting Malaysia Berhad into Empire Resorts to 624.4 million dollars. The move will increase the stake Genting Malaysia holds in Empire Resorts from 49 percent to a massive 76.3 percent.
Empire Resorts is in charge of operating Resorts World Catskills, an integrated casino resort which is located just 90 miles away from New York City. This resort started to operate in January 2019.
The company also operates Resorts World Hudson Valley, a facility of over 90,000 square feet which hosts over 1,200 video lottery terminals. This venue is not yet open to the public but it is expected to begin its operations by Christmas. Moreover, Empire Resorts also has mobile sports betting operations in New York since March 2022.
Genting Malaysia issued a statement in which it explained that the decision to invest further funds into Empire Resorts comes after the American company recorded improving performances, showing “a strong rebound in its operational performance since June 2021”.
The Malaysian company also noted that the investment will be funded through “internally generated funds” while also pointing out that the move is in line with its intentions to get a full casino license in New York.
Empire resorts generated earnings before interest, tax, depreciation and amortization (EBITDA) of 30.6 million dollars in the 2021 fiscal year and EBIDTDA of 31.6 million in the first three quarters of 2022.
Genting Malaysia has managed to narrow its losses in the third quarter of 2022. During the three months to the end of September 2022, the company recorded a loss of 8.26 million Malaysian Ringgit, which is equivalent to 1.83 million U.S. dollars. That result is much better compared to the same quarter of 2021, when the company lost 307.04 million Malaysian Ringgit.