Gaming and non-gaming revenue recovered to 96% and 78% of pre-COVID levels.
Genting Singapore's net profit in 2H22 rose 2.7x
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A final dividend of S$0.02 per share were declared, bringing full-year dividend to S$0.03, representing a payout ratio of 106%. See Genting Singapore's dividend history. Management shared that this would be a special case to reward shareholders. The dividend payout ratio is unlikely to be sustained above 100% given management’s prudent capital conservation due to the development of RWS2.0.
Labour was at 90% of 2019 levels; Genting Singapore plans to increase hiring to 95%
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Net profit margin in 4Q22 compressed by 4 percentage points q-o-q to 22.1%, mainly due to higher operating expenses, increased casino tax rates and accelerated depreciated on certain assets in connection with our renovation of Festive Hotel and RWS 2.0 expansion plans.
We note that Genting Singapore has recruited ~90% of the staff it requires at full capacity and plans to increase it to 95% in 2023 but is unlikely to return to 100% of 2019 levels given labour shortage.
China’s reopening a catalyst but takes time
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Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
