Analysts predict a weaker fourth quarter for Resorts World Sentosa (RWS) due to reduced hotel capacity and seasonal dips in visitors.
Experts think Resorts World Sentosa (RWS) will have a weaker fourth quarter due to fewer visitors the last three months of the 2024, while having fewer hotel rooms available than last year - estimating weaker results compared to its rival Marina Bay Sands (MBS), primarily due to seasonal factors and ongoing softness in its VIP gaming segment.
This assessment comes despite MBS reporting a strong rebound in VIP rolling chip volume for the same period.
"On non-gaming, too, we think revenues will remain flat-to-down year-on-year because of lower hotel room inventory," Nomura analysts Tushar Mohata and Alpa Aggarwal stated.
MBS parent company, Las Vegas Sands, recently announced a 10% year-on-year and 24% quarter-on-quarter increase in VIP rolling chip volume, reaching SG$10.75 billion (US$7.96 billion) in the fourth quarter of 2024. This figure represents a significant recovery, exceeding the property's average 2019 quarterly run-rate by 7%. However, the Nomura analysts suggest that RWS is unlikely to replicate this success.
Even though this quarter might be bad, experts still think Genting Singapore (the company that owns RWS) is a good investment. They believe things will get better in 2025 because RWS is building new attractions like a Minion Land, a bigger aquarium, and more hotel rooms. These upgrades are expected to bring in more visitors and money.
Genting anticipates a phased opening of these new attractions starting in the first half of 2025, with significant contributions to earnings expected in the latter half of 2025 and into 2026. The RWS 2.0 expansion is envisioned as a "monumental gateway" to RWS and the new Greater Southern Waterfront precinct, according to Genting.
Read related article: Resorts World Sentosa $5 Billion Revamp Set to Open in 2030
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