- Genting Singapore (SGX:G13)'s 3Q22/9M22 results were within our expectations. Crucially, they appear sustainable to us. Going forward, we expect similar quarterly results.
- In the near term, we expect regional VIPs to continue gambling primarily in Singapore and locals remaining in Singapore to gamble.
- - Read this at SGinvestors.io -
Genting Singapore's earnings were within our expectations…
- Genting Singapore's 3Q22 core net profit of S$132.3m (+409% y-o-y, +103% q-o-q) brought 9M22 core net profit to S$241m (+75% y-o-y) which was within our expectations.
- While the 9M22 core net profit accounted for only 63% of our FY estimate, we expect 4Q22 core net profit to be similar to that of 3Q22. This would bring FY22 core net profit in-line with our expectations.
- - Read this at SGinvestors.io -
… and appear sustainable in the near future to us
- This is because we gather that the 3Q22 VIP win rate was within the theoretical range (i.e.2.7%-3.0%) as the 3Q22 EBITDA margin of 48% is largely in-line with our long term EBITDA margin forecast of 51%-52%. 3Q22 core net profit was up 409% y-o-y due a low 3Q21 base which was negatively impacted by the Delta wave then.
- 3Q22 core net profit was up 103% q-o-q due to a low 2Q22 base which was negatively impacted by an exceptionally low VIP win rate of 1.5% then.
Singaporean gaming in a sweet spot… for now
- Read more at SGinvestors.io.
