Singapore GGR to reach 48 per cent of pre-pandemic levels, analysts say

Sanford C. Bernstein has predicted Singapore GGR will grow 12 per cent year-on-year, mainly through domestic demand.

Singapore.- Singapore GGR will grow this year despite the ongoing impact of the Covid-19 pandemic. According to Sanford C. Bernstein, the casino market will grow 12 per cent year-on-year to nearly 48 per cent of pre-pandemic levels.

Analysts predict Singapore’s GGR will reach nearly SGD3bn (US$2.27bn), of which SGD1.42bn will come from slot machines. Mass-market table GGR is predicted to reach SGD1.06bn and VIP table games SGD514m. 

As long as the arrival of tourists continues to be affected by the Covid-19 pandemic, it will be the local demand for gaming that drives the growth.

However, Robert Goldstein, chairman and chief executive of Las Vegas Sands Corp, controller of the Marina Bay Sands casino resort, said domestic demand will decrease once people can travel again.

Foreign tourism in Singapore has to wait

It is still unknown when the country will end current restrictions on inbound tourism. Singapore will remain under its Phase-2 of restrictions until at least June 13. The Ministry of Health has reported 14 new cases in the last 24 hours.

In April, the Ministry of Transport announced an air travel bubble with Hong Kong to begin on May 26. However, new cases of Covid-19 ledto the plans to be put back.

Casinos are working with a limited capacity. Marina Bay Sands’ live-dealer tables are serving a maximum of two players at once.

Analysts predict Singapore will reopen its frontiers during 2022 and will recover to nearly 73 per cent of pre-pandemic levels.

Sanford Bernstein expects mass GGR and non-gaming to return to normal levels in 2023.

Brokerage Nomura has reduced its previous EBITDA forecasts for Genting Singapore by 15 per cent for 2021 and 2022 due to lower than expected revenue in Q1.

It now expects Genting Singapore to record an average quarterly EBITDA of SGD133m for 2021, down 37 per cent from the previous quarter.

Genting Singapore reported a decrease in revenue of 32 per cent year-over-year and 12 per cent compared to the previous quarter during Q1.

Adjusted EBITDA came in at SGD118.1m, down 19 per cent from the SGD145m in the first quarter of 2020. 

Casino sales were up 2 per cent when compared to the previous quarter, from SGD213.5m to SGD216.9m but down 19 per cent from 2020 levels.

Despite the slight increase in casino sales thanks to domestic business after properties reopened, the casino operator is highly dependant on international tourism.