Genting Singapore - DBS Research 2022-08-15: Placing Our Bets On The House

• Genting Singapore (SGX:G13)'s 2QFY22 results would have topped expectations if not for bad luck. 2QFY22 adjusted EBITDA came in at S$147.1m (-0.6% y-o-y, +20.9% q-o-q), bringing 1HFY22 adjusted EBITDA to S$268.7m, accounting for 40.4% of our full-year estimate. However, on a hold-normalised basis (VIP win rate of 1.5% in 2QFY22 vs normal range of 2.9- 3.2%), EBITDA would have amounted to S$182.2m in 2QFY22. Adjusted EBITDA would also have been higher as GENS ceded some market share due to a lack of manpower as well.
• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Manpower is a major challenge.

• Genting Singapore's management highlighted that underlying demand was robust, but they were unable to fully capture demand due to capacity issues during the period.
• Genting Singapore currently has about 5,000 employees, as compared to 7,000-8,000 prior to the pandemic, and is targeting to hire 1,600 new employees by end-2022 to meet an imminent rebound in demand. Although the local job market is incredibly tight, the government has been providing support by facilitating the employment of foreigners.

Operating margins could take longer to normalise because of inflation.

• Read more at SGinvestors.io.

Jason SUM CFA DBS Group Research | https://www.dbs.com/insightsdirect/ 2022-08-15 SGinvestors.io

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