Resorts World Sentosa operator Genting Singapore has reported revenues of SG$1.34 billion (US$998 million) for the six months to 31 December 2023, up 26% year-on-year and 24% higher than in the six months through 30 June.
This was despite a significant slow-down in Q4 on seasonality, with analysts noting that many Singaporeans travelled overseas during year-end holidays, leading to softness in both gaming and non-gaming.
In a filing, Genting Singapore revealed a 19% year-on-year increase in gaming revenues at RWS in 2H23 to SG$900.6 million (US$670 million) – up 21% over the first half of the year – while non-gaming revenues climbed by 42% and 31% respectively to SG$436.3 million (US$325 million).
Adjusted EBITDA of SG$573.2 million (US$427 million) was up 13% year-on-year and 27% sequentially, with the company reporting a 2H23 net profit of SG$334.9 million (US$249 million), a 31% year-on-year increase.
FY23 revenues were up 40% compared with 2022 to SG$2.42 billion (US$1.80 billion), with Adjusted EBITDA climbing 32% to SG$1.03 billion (US$767 million) and net profit by 80% to SG$611.6 million (US$455 million).
While Genting Singapore did not break down its 4Q23 result in its earnings release, it described gaming revenue growth as “very respectable”, while non-gaming revenue was “impacted by various factors such as the strong Singapore dollar, persistently high airfares and accommodation costs, and the slower recovery of Chinese outbound travel.”
In a note, Nomura analysts Tushar Mohata and Alpa Aggarwal described the company’s 4Q23 results as a miss, with EBITDA falling by 34% compared with the September 2023 quarter. Seasonality was cited as a key reason, however the analysts also pointed to various one-off items which were a drag – including management’s decision to take a much higher provision on its trade receivable balance, commensurate with higher VIP rolling chip volume.
Genting Singapore’s final dividend per share of 3.5 cents in 2023 was also described as being slightly below street estimates.
Mohata and Aggarwal do expect significant improvement in 1Q24, aided “seasonally strongest gaming volumes, the mutual Singapore-China visa waiver starting February, non-recurring one-off items, and a concert-led tourism boom.”
In its filing, Genting Singapore said the company was making strong headway in its redevelopment and expansion process, including the ongoing developments taking place at the Forum Lifestyle zone, Universal Studios Singapore’s Minion Land and the Singapore Oceanarium – all on track to a soft opening in early 2025.
“The tenders have been issued for the new waterfront development, featuring 700 hotel keys and immersive lifestyle offerings, with tender returns expected in the second quarter of this year,” it said.
“Renovation and upgrading works in the entire resort will be refurbished in phases that will include all our existing hotels and food & beverage outlets, attractions and the casino.”
