The recently overhauled management team at Genting’s Las Vegas flagship Resorts World Las Vegas (RWLV) will need to reassess their appetite for risk after the property again reported disappointing results for the three months to 31 March 2025, according to Nomura analysts.
The commentary follows the establishment late last year of a Board of Directors led by former MGM Resorts CEO Jim Murren and the appointment of a new management team now headed by Carlos Castro. Those changes were Genting’s response to a complaint by the Nevada Gaming Control Board (NGCB) for alleged compliance failures including allowing individuals with suspected or proven ties to illegal activities to gamble on property.
While RWLV has now consigned the NGCB’s complaint to the rearview mirror after reaching a settlement in March, performance remains subdued with Genting Bhd’s results release late last week showing revenue of US$166 million at the Las Vegas in 1Q25 – down from US$214 million a year earlier and from US$190 million in the December quarter.
EBITDA of US$10 million was down from US$40 million in 1Q24 although improved from US$2 million in 4Q24.
In a note, Nomura’s Tushar Mohata and Alpa Aggarwal said they expect RWLV’s performance to take time to recover to FY23 levels due to “recalibration of [the] business under new management.”
More specifically, they cited a need for management to “recalibrates risk appetite” in the wake of the NGCB complaint.
Genting itself said the 1Q25 results in Las Vegas were impacted by lower hold percentage plus lower visitation compared with the record visitation achieved a year earlier when Super Bowl was in town. Hotel occupancy and Average Daily Rate in 1Q25 were 82.3% and US$274 respectively, compared with 89.1% and US$298 in 1Q24, it said.
Notably, the company referenced its desire to “recover and re-establish VIP play” now that the complaint has been settled
“There are signs of improvements in high-end play with increased table volumes,” the company said.
“In addition, RWLV expects to see improvements in ADR and occupancy in 2025 through an upgraded hotel management system, which now allows RWLV to own the hotel customer database, giving RWLV flexibility to provide real time hotel offers and enhanced customer experience to guests. Combined with investment in an upgraded casino offer management system, RWLV will yield a stronger customer mix via casino, convention and direct bookings.
“RWLV remains focused on improving margins through strategic growth and operational efficiencies. In 2025, the property will leverage an enhanced hotel system to extend its reach to customers and implement tailored casino offerings to drive repeat visitation.
“Additionally, RWLV is actively growing high-end hosted casino play and will continue its casino and resort marketing initiatives to attract high-value guests, while strengthening its convention business with established and new groups. Investments in new dining concepts, entertainment and retail will further drive engagement and operating leverage.”
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