An increase in VIP play at Resorts World Sentosa drove a 7% gain in revenue for Genting Singapore in the fourth quarter.
Revenue hit S$792 million in the October-to-December period (HK$6.26 billion/US$639.1 million), the company reported, up from $786 million in Q4 2011.
Union Gaming Research Macau’s estimate of S$17.8 billion in rolling chip turnover represents a 50% improvement year on year and has the investment firm forecasting 10% growth this year in VIP volume at the property.
“Genting management is now notably bullish with respect to their VIP segment, noting general strength and an increase in new customers,” UGRM said in a note to investors today. “They specifically mentioned that their Chinese-originated VIP business, which we believe accounts for about 50% of VIP GGR, is particularly healthy. This new tone represents a turnaround from previous commentary from both Singapore IR operators.”
Genting said in the filing with the Singapore Stock Exchange that it is cautiously optimistic about its performance in 2013 and warned of margin pressure in the first half. Fourth-quarter EBITDA was down 6% to S$369 million, and a number of one-time write-offs at Sentosa caused profit to tumble 38% to $162.2 million.
Both RWS and Las Vegas Sands’ Marina Bay Sands continue to be affected by tougher restrictions on locals play, which is resulting in softer growth in mass-market tables and slots.
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