Casinos in Singapore: Nomura expects stronger H2 performance for Genting Singapore

Growth is expected due to a seasonal rise in non-gaming revenue.

Singapore.- Resorts World Sentosa (RWS), operated by Genting Singapore, is anticipated to see growth in its financial results for the second half of the year, according to financial services group Nomura. The outlook is based on “a seasonal peak in non-gaming revenues along with gaming revenue improvement.” However, the institution noted second-half results could be impacted by “volatility in VIP win rate.”

Analysts Tushar Mohata and Alpa Aggarwal estimated that rolling chip volume, mass table drop, and slot handle will increase by 19, 13 and 8 per cent in year-on-year terms, respectively, due to a progressive increase in visitor arrivals from China. They said attractions such as Minion Land, Oceanarium, Central Lifestyle Connector, food and beverage outlets and the new all-suite hotel, expected to be ready for a soft opening in early 2025, could provide further growth.

The casino operator posted net profit of SG$356.9m (US$271.4m) for the first half of the year, up 29 per cent from last year. Revenue was up 25.5 per cent year-on-year at SG$1.35bn. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) improved 26 per cent in year-on-year terms to SG$570.8m. The cost of sales in the six months to June 30 was up 29 per cent year-on-year at SG$871.5m.

Gaming revenue rose 28.24 per year-on-year to SG$957.6m and non-gaming revenue 18 per cent to SG$393.1m. Genting Singapore’s consolidated revenue was up 25 per cent to SG$1.35bn. Hotel rooms brought in SG$121.52m in revenue, while attractions were the biggest non-gaming contributor at SG$201.27m.

See also: Genting Singapore winds up Japan-based subsidiaries

Competitor, Marina Bay Sands, run by Las Vegas Sands (LVS), posted a net revenue of US$919m for the third quarter of the year. The figure was down 9.5 per cent year-on-yead and down 9.89 per cent from the second quarter of the year.

The casino operator’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was US$406m, down 17.3 per cent year-on-year from US$491m for the third quarter of 2023 and down 21 per cent from the previous quarter.

Casino revenue was down 16.33 per cent year-on-year from US$698m to US$600m and rolling chip volume by 19.5 per cent to US$6.55bn. Non-rolling chip drop was up 9.8 per cent at US$2.12bn. The slot handle was down 8 per cent at US$5.85bn.

Tourism in Singapore: 1.27 million visitors in September

The Singapore Tourism Board (STB) has reported that the country received 1.27 million visitors in September. That’s a 12.3 per cent increase in year-on-year terms but a decline of 17.53 per cent sequentially.

Singapore hosted over 540,000 overnight visitors, marking a 34.7 per cent decrease compared to last year. On average, guests stayed for 3.29 days in the city-state, representing a 9.9 per cent decline. The largest number of visitors came from China (217,000), followed by Indonesia, Malaysia, Australia and India.

In the first nine months of the year, the country received 12.59 million tourists. China was the top source market, with 2.47m visits.