Genting Reports £130 Million Loss
26th November, 2007
Thanks once again to the rise in gaming duty and the smoking ban in England, Genting, the Malaysian owver of Britain’s biggest casino operator has reported a £130 million loss.
Yesterday, Genting reported a £897.3 million ringgit impairment loss against the value of the Stanley Casinos business which it bought 14 months ago for £639 million.
Parroting complaints of their competitors, Genting says the duty increase “took the UK gaming industry by surprise as it was made without any prior consultation and indication.”
The company also claims (like many of their rivals) that the July 1st smoking ban has adversely affected profits. Stanley Casinos, whose portfolio of 46 locations includes Britain’s oldest, Crockfords in Mayfair, contributed revenue of 376.3 ringgit in the three months to 30th September. When Genting took Stanley private last year, Genting said it saw the company as “a platform for expansion in the soon-to-be deregulated UK gaming industry.”
There is no telling when the industry may turn around, but for now the £130 million loss report comes as no surprise when competitors such as Rank Group are struggling with the same problems.
