Genting Singapore GGR unlikely to recover soon, analysts say
Analysts say Genting Singapore’s GGR won’t return to pre-pandemic levels for some time due to increased competition and the lack of Chinese players.
Singapore.- Yin Shao Yang, an analyst at Maybank, has said that it’s unlikely that Genting Singapore’s gross gaming revenue will return to pre-pandemic levels anytime soon due to the fact that competition in the Asian market has grown. Although Singapore has reopened its borders, Yin Shao Yang believes that in 2024, the casino operator will see a two per cent drop in profits.
According to Maybank, Resorts World Sentosa‘s VIP volume will return to 83 per cent of 2019 levels by mid-2022, while mass market will recover to 92 per cent of its prior levels next year, from 2024.
The gaming industry has grown in the Philippines and Cambodia, and there’s also the chance that Thailand may legalise gambling, which would cause players to migrate to that market.
According to Asian Gaming Brief, Yang said: “Even without IRs, 11 million Chinese visited Thailand in 2019. Should Thai IRs materialise, we would wonder how financially viable the S$4.5bn RWS 2.0 expansion will be.”
Yang also noted that there may be an impact due to Chinese authorities making cross-border gambling a criminal offence in March 2021.
Resorts World Sentosa has confirmed it will carry out a phased refurbishment from this quarter to 2023. The plan will cover 1,200 units across its three hotels: Hard Rock Hotel Singapore, Hotel Michael and the Festive Hotel.
Genting Singapore’s market competitor Las Vegas Sands, has announced that the Singapore Tourism Board has allowed it to extend the deadline for its SGD4.5bn (US$3.31bn) expansion project at Marina Bay Sands casino resort to April 8, 2023.
