Genting Singapore Anticipates Robust 1Q24 Results

The influence of the Chinese New Year celebrations, the return of Chinese tourists, and the fallout from recent high-profile performances in Singapore are expected to drive Genting Singapore’s first-quarter performance, according to Nomura analysts.

Nomura’s Tushar Mohata and Alpa Aggarwal highlight the strong trend in volumes, particularly in the mainstream and VIP sectors, following the release of Marina Bay Sands’ Q1 financial results, suggesting a positive outlook for Resorts World Sentosa.

Genting Singapore’s “seasonally strong” performance is expected to be fueled by the surge in visitor arrivals, especially from Greater China, during 1Q24 as a result of Chinese New Year celebrations, Singaporean concerts, and the bilateral visa exemption between Singapore and China.

Mohata and Aggarwal note that impairments had an effect on Genting Singapore’s 4Q23 results, which led to a decline in EBITDA from quarter to quarter.

They do anticipate 1Q24 to see a significant improvement in impairments, which will support sequential earnings growth.

In addition, Genting Singapore’s performance is enhanced as Singapore Airlines’ return to three Chinese cities on April 22 allays worries about the effect on Chinese travel to Singapore.

Nomura maintains its “Buy” rating for Genting Singapore, citing the company’s development potential and resiliency in the evolving gaming sector. Nomura projects strong increase in rolling chip volume, mass table drop, and slot handling for 2024.

Original Story by: Inside Asian Gaming