Resorts World owner lost £56m in casinos crisis
BIRMINGHAM-BASED casino operator Genting UK, which owns Resorts World Birmingham, lost £56m in 2015 after its premier clubs in London took in £100m less than a year earlier.
Revenues at its four London clubs – which it calls its international division – fell by nearly two-thirds, creating operating losses from thos venues of £45m. Despite profitably improving trading at its Genting Club and Genting Casino sites around the country, which increased revenues by 15%, the group had pre-tax losses of £55.8m in 2015.
Although the casinos attracted another 100,000 visitors, taking the annual total to 4.17m, the average spend was down 29%. This was caused by a 64% fall in spend per head at its London, which fell by £285 to £160.
Peter Brooks, president and chief operating officer of Genting UK, said: “The focus of the group over the coming year includes strengthening the group’s position in the domestic business segment and improving business efficiency.
“In addition following the adverse effects of events encountered in Asia on the international business segment, the group has revised its marketing efforts and will be implementing additional strategies to reinforce this segment.”
The group operates 43 casinos in the UK, including four in Birmingham, plus Coventry and Stoke-on-Trent.
Genting opened Resorts World Birmingham in October, a £150m development at the NEC which includes a hotel, casino, cinema, conferencing facility, alongside shops, restaurants and bars.
Mr Brooks added: “The group will also focus on stabilising operations and growing business volumes at Resorts World Birmingham.”
Genting UK is part of Malaysian gaming business Genting Berhad, which has confirmed in writing its ongoing financial support for the UK business until at least March 2017.
