Genting Singapore reported gaming revenue of SG$330 million (US$250 million) at Resorts World Sentosa (RWS) in the three months to 30 September 2024, down 28% year-on-year due to lower VIP volume and win rate.
Non-gaming revenues of SG$231.8 million (US$176 million) were 2% higher year-on-year on seasonality, despite the full closure of Hard Rock Hotel for renovation and re-branding and the S.E.A. Aquarium’s weekly two-day closure for its expansion into the Singapore Oceanarium, the company explained.
Compared to the June quarter, gaming revenue was down 14% while non-gaming was up 22%. Adjusted EBITDA of SG$163.9 million (US$124 million) was down 58% year-on-year and 19% quarter-on-quarter.
In a note, Nomura analysts Tushar Mohata and Alpa Aggarwal said the results were below expectations, with low hold negatively impacting Adjusted EBITDA to the tune of between SG$55 million and SG$60 million (US$42 million and 45 million).
As a result, RWS’s Singapore total market share fell to 36% for the quarter, with VIP contributing 33% of gaming revenues for the quarter – mass was at 67%. VIP market share was 47% with local rival Marina Bay Sands having also reported a weaker premium gaming segment in Q3.
“Given 3Q is seasonally the strongest quarter for GENS, the 3Q24 results were a miss in our view,” Nomura said.
“Barring any positive surprise on win rate, we think that weaker earnings might persist for another two to three quarters until RWS 2.0 attractions (Minion Land, the Singapore Oceanarium, the Central Lifestyle Connector and an all-suite hotel in place of Hard Rock Hotel) start to open progressively from 1H25, and meaningfully contribute to earnings growth in 2H25/2026.”
Genting Singapore said it had taken the opportunity to accelerate the transformation of many RWS attractions during the September quarter as a result of Development of the “slower recovery of international visitor arrivals to Singapore, increased competition and global uncertainty.”
“As we progress with RWS 2.0 developments, RWS will be unveiling new and elevated visitor experiences progressively in phases,” the company explained.
“Starting with the launch of Asia’s first Harry Potter: Visions of Magic experience in November 2024, the exclusive experience will be the largest iteration of Harry Potter interactive AR experience anywhere in the world. The development of Universal Studios Singapore’s new themed zone, Illumination’s Minion Land is on target, and set to open in the first quarter of 2025.
“We are also excited to announce that RWS has achieved a significant milestone by awarding the construction contract for the Waterfront development and work will commence in November 2024.”
The Waterfront development is slated to include two new luxury hotels featuring 700 keys, a four-storey podium housing entertainment offerings, plus various retail and dining outlets.
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