Genting Singapore’s Resorts World Sentosa (RWS) is unlikely to replicate the strong 1Q25 performance of its Singapore peer Marina Bay Sands (MBS), impacted by reduced hotel room inventory, a weak macro environment and lower hold compared with a year earlier, according to Nomura analysts.
The outlook is, however, tipped to improve once RWS 2.0 attractions start opening during the current quarter.
The update followed an impressive showing from MBS as part of Las Vegas Sands, Q1 results announcement last week, with both VIP rolling chip and mass volumes holding steady quarter-on-quarter and still well above pre-COVID levels.
In a note, Nomura’s Tushar Mohata and Alpa Aggarwal pointed out that VIP volume growth and win percentage between Singapore’s two integrated resorts can differ materially and while RWS’s Q1 VIP rolling chip volume is seen recovering versus the December quarter, it will probably be lower year-on-year due to lower hotel room inventory and the weakened macro environment.
“On win rate, 1Q24 was higher at 4.62% and if this normalized in 1Q25, there will also be a negative year-on-year impact from lower hold percentage,” the analysts wrote.
“On non-gaming, we think RWS’s revenue likely remained flattish-to-down year-on-year in 1Q25 because of lower hotel room inventory (~1,200 rooms in 1Q25 vs ~1,540 in Jan to Feb 2024, before refurbishments began in March 24).
“Barring any positive surprise on win rate, we therefore think that 1Q25 might still be weak year-on-year for GENS, and the weakened performance is likely to continue until RWS 2.0 attractions Minion Land, the Singapore Oceanarium, the Central Lifestyle Connector and an all-suite hotel in place of the Hard Rock Hotel start to open progressively from 2H25 and meaningfully contribute to earnings growth in 2H25/2026.”
Nomura is estimating 1Q25 revenue at RWS to reach SG$650 million (US$494 million) with EBITDA of SG$250 million (US$190 million).
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