Banking group Nomura estimates that Genting Singapore’s earnings for the second half of the year will be “at first-half 2021 levels or below.”
Singapore.- According to Nomura, Genting Singapore’s earnings for the second half will be similar to those registered during the first quarter of the year or even below that level.
Genting Singapore Ltd reported a net profit of SGD88.2m (US$65m) for the first quarter, which compares to a loss of SGD116.7m last year. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the first half was SGD276.1m, compared to SGD66.7m in the first half of 2020.
According to analysts, since Singapore’s casino resorts are highly dependant on international tourism, there will be no recovery soon. However, the government of Singapore has announced that travel restrictions will be eased from August 20 for visitors coming from countries considered safe.
Sanford C. Bernstein Ltd compared Genting Singapore’s RWS with Marina Bay Sands. Analysts and found that RWS did better in gaming revenue for the second quarter, up 4 per cent quarter-on-quarter while MBS saw a fall of 26 per cent.
However, Bernstein noted that non-gaming revenue at Resorts World Sentosa declined 28 per cent while Marina Bay Sands’ non-gaming revenue was down 15 per cent.
Analysts predict Genting Singapore’s revenue will reach SGD1.74bn (US$1.30bn) in 2021, and almost SGD2.11bn in 2022. In 2020, the company reported revenue of SGD69.2m (US$52.1m), down 89.9 per cent year-on-year.
Resorts World Sentosa will continue operating at reduced capacity until August 18.