Nomura downgrades Genting Singapore
Analysts are cautious following weak first-quarter results.
Singapore.- Analysts at Nomura have downgraded Genting Singapore after the company posted a 55 per cent year-on-year drop in first-quarter profit. It said the pace of recovery from Resorts World Sentosa’s transformation investments has been “materially slower than anticipated,” prompting it to cut its 2026 EBITDA and net profit forecasts.
The firm also noted that Resorts World Sentosa’s VIP rolling market share had fallen to an all-time low against rival Marina Bay Sands.
Meanwhile, Maybank has maintained a “hold” rating on the stock but warned that transformation-related expenses are likely to remain elevated through 2026. The bank said higher operational costs tied to infrastructure upgrades, hotel renovations and marketing initiatives continue to weigh on margins.
Both brokerages also noted macroeconomic pressures, including rising airfares and softer travel demand, as headwinds for Singapore’s gaming and tourism sector.
Earlier this week, Genting Singapore posted net profit of SG$65.2m (US$51.2m) for the three months ended March 31, down 55 per cent compared to the same period last year. Revenue fell 3 per cent year-on-year to SG$607.6m (US$477m).
Gaming revenue totalled SG$403m (US$316), representing a decline of nearly 8 per cent from Q1 2025. Meanwhile, non-gaming revenue rose more than 8 per cent to SG$204.1m (US$160m), supported by higher visitor numbers to attractions at Resorts World Sentosa. Adjusted EBITDA fell 24 per cent year-on-year to SG$179m (US$140m).
