Genting Singapore, the Genting unit operating Resorts World Sentosa, has reported its first quarter 2010 results, posting revenues of SD334.9 million (USD242.2 million).
On average, daily revenues for the period were SD7.3 million (USD5.3 million). Given that RWS, the first of Singapore’s integrated casino resorts, only opened on 14th February, the Q1 results are more a snapshot than a comprehensive portrait, showing revenue for only 46 days.
If, however, that daily revenue figure were annualised, it would put RWS on course for revenues of around SD2.66 billion (USD1.92 billion) over 12 months, or SD2.33 billion (USD1.69 billion) in calendar year 2010.
The company said in a filing with the Singapore Stock Exchange that its adjusted Singapore EBITDA (earnings before interest, taxation, depreciation and amortisation) for the period were SD109 million (USD78.8 million), giving an EBITDA margin of 32.5 percent.
Extrapolated on a daily basis, that would provide EBITDA of approximately SD2.37 million (USD1.71 million) per day. If that figure were then annualised, it would provide RWS with EBITDA of SD865 million (USD626 million) over 12 months, or SD756 million (USD546.8 million) in calendar year 2010.
There are, though, a number of variables that could count against projecting the 46-day snapshot across a whole year. One is the opening ‘bounce’ associated with most new properties, even in established casino gaming markets such as Macau and Las Vegas. Another is that because RWS opened on the first day of the Chinese New Year holiday, that could have had an additional distorting effect in terms of mass-market traffic to the resort. A third is that it’s not yet clear what impact, if any, Marina Bay Sands, the rival casino resort built by Las Vegas Sands Corp, will have on visitor flow to RWS. A fourth is that the industry will need more information about the split between mass market and premium (VIP) segment revenues and about the development and operation of the high roller segment in the Singapore market in order to understand the likely size of the market over a whole year. In Macau, high rollers provided more than 70 percent of gross gaming revenues last year.
Note: Genting Singapore’s total revenues for Q1 2010 were SD460.4 million, but that includes revenue from the unit’s UK casino operations
