RWS to post EBITDA of US$220.7m for Q1, analysts say

Morgan Stanley predicts a 25 per cent rise sequentially.

Singapore.- Morgan Stanley Asia has predicted that Resorts World Sentosa (RWS) will post earnings before interest, taxation, depreciation, and amortisation (EBITDA) of SG$300m (US$220.7m) for the first quarter. The figure would represent a sequential increase of 25 per cent and a year-on-year increase of 53 per cent.

The result would represent about 89 per cent of the pre-pandemic level seen in the first quarter of 2019 and is 9 per cent higher than the sell-side consensus provided by Visible Alpha. Analysts Praveen Choudhary and Gareth Leung said Genting Singapore’s year-on-year growth in net revenue is expected to slow down to about 5 per cent in 2024, from 41 per cent in 2023.

While Genting Singapore’s gaming volumes recovered to or slightly above 2019 levels in the fourth quarter of 2023, gaming volume for 2024 could be limited by 400 fewer hotel rooms after Hard Rock’s closure. They said 2024 gaming growth could come from the mass segment and market share improvements. 

Factors that could contribute to the sequential gain in EBITDA for the first quarter include a low base in the fourth quarter of 2023, which was impacted by approximately SG$40m in one-off charges, improved Chinese visitor volume, and collection of some of the high provisions made in the fourth quarter of 2023 in relation to receivables. 

Analysts anticipated that Genting Singapore’s dividend per share for 2024 to increase 14 per cent year-on-year to a SG$0.04/4.5 per cent yield, the 2019 level.

See also: Analysts have positive outlook for Genting Singapore in 2024

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 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).