Genting Singapore Q4 results below expectations

Analysts at Morgan Stanley have cut 2024 estimates for net revenue.

Singapore.- Genting Singapore has reported fourth-quarter results below analysts’ consensus. EBITDA was US$241m, lower than the expected range of US$260m to US$290m.

According to a note from Morgan Stanley Asia, the results were due to several one-off items, including a provision of US$56m, higher than US$16m each in the first and second quarters. Morgan Stanley said this should not be the new run rate and was justified since the VIP roll doubled year-on-year in 2023. There were also other one-off items worth SG$30m (US$22.5m), including costs on cash bonuses and hotel negotiations.

Morgan Stanley has revised its 2024 estimates for Genting Singapore’s net revenue down by 6 per cent to SG$2.5bn, which would be up 5 per cent year-on-year and 3 per cent above the 2019. Analysts reduced 2024 EBITDA estimates by 7 per cent to SG$1.1bn. The new estimate forecasts a decrease of 15 per cent in net profit to around SG$664m.

Analysts believe that earnings and dividends will grow every year from 2024 to 2026, driven by rising visitor arrivals to Singapore, helped by visa-free travel with China, improving air capacity and new attractions at Resorts World Sentosa to come in 2025.

Genting Singapore reported an 80 per cent increase in net profit from SG$340.1m (US$254.6m) to SG$611.6m (US$456m) for the full year 2023. Revenue increased 40 per cent year-on-year to SG$2.4bn (US$1.8bn).  

Resorts World Sentosa (RWS) delivered adjusted earnings before interest, tax, depreciation and amortisation of SG$1.1bn (US$788m) representing around 86 per cent of pre-Covid-19 adjusted EBITDA. Gaming revenue was up 34.1 per cent year-on-year to SG$1.65bn (US$1.23bn).