Genting Singapore Ltd willing to expand into other markets

The company that operates Singapore’s Resorts World Sentosa casino complex, Genting Singapore Ltd, is willing to expand into other markets under certain circumstances. Genting Singapore would contemplate expanding if the estimated internal rate of return exceeded 15% and group returns on equity recovered to over 10%, according to Maybank Research Pte Ltd, citing management.

With its share of the Singapore casino duopoly with Las Vegas Sands Corp.’s Marina Bay Sands complex, Genting Singapore saw its net profit increase by 227.7% year over year in the first half of the year, hitting SGD 276.7 million.

When the newly elected mayor opted not to continue the casino plan, Genting Singapore gave up its prior interest in acquiring a license for a casino in Yokohama, Japan, in September 2021.

Through December 2024, Genting Singapore is expected to produce an operational cash flow of SGD 1.4 billion, which should be sufficient to pay for capital expenditures, dividend distributions, and a modest amount of debt service.

According to the terms of its agreement with the Singaporean government, the business has committed to investing SGD 4.5 billion in the Resorts World Sentosa “RWS 2.0” development, which would take place in phases.

VIP gamblers continue to frequent Resorts World Sentosa despite a prominent money-laundering investigation involving SGD 2.8 billion worth of assets in Singapore. There has been no discernible drop in involvement with VIPs while the mainstream market at the resort is expanding.

Maybank also stated that Resorts World Sentosa’s mass market gross gaming income for the first half of the year achieved almost 100% of 2019 levels despite a little rebound in the number of visitors from mainland China.

The bank anticipates that Genting Singapore would bring in around SGD 2.25 billion in sales and SGD 637 million in core net profit in 2023. These projections assume that VIP traffic will remain stable at 87% of 2019 levels and that mass-market gross gaming revenue will increase to 105% of 2019 levels.

Original story by: GGRAsia