Analysts have positive outlook for Genting Singapore in 2024

Genting Singapore missed market expectations for Q4, but analysts remain optimistic.

Singapore.- Analysts from JP Morgan, Maybank and Nomura have shared their views on Genting Singapore’s outlook after the company shared its financial results for Q4 2023 and the full year. Q4 earnings before interest, taxation, depreciation, and amortization (EBITDA) missed market forecasts, but analysts remain optimistic.

JP Morgan said the results for the fourth quarter were disappointing, but that it did not change its investment strategy. The report said costs and margins were lower than expected due to higher bad debt and reinvestments, which had an impact on EBITDA, causing it to miss the consensus by 10 to 15 per cent.

Nomura noted strong gaming volumes, the new visa waiver agreement between Singapore and China, and upcoming non-gaming facilities at Resorts World Sentosa as positives in Genting’s favour. Meanwhile, Maybank Investment Bank noted the company’s expectation of reduced impairment of trade receivables and the absence of recurring penalties and write-offs. 

Genting Singapore reported a 32.5 per cent increase in adjusted EBITDA for the full year of 2023, amounting to SG$1.03bn (US$767.0m). The company posted an 80 per cent increase in net profit from SG$340.1m (US$254.6m) to SG$611.6m (US$456m). Revenue increased 40 per cent year-on-year to SG$2.4bn (US$1.8bn). 

The bank also noted the positive impact of increased Chinese visitor volume following the mutual visa waiver agreement between Singapore and China.

Despite the challenges faced in the fourth quarter, analysts reiterated their confidence in Genting Singapore’s long-term prospects, citing its undemanding valuation and potential for growth, especially with the ongoing expansion efforts at Resorts World Sentosa.