Genting Singapore - UOB Kay Hian 2023-05-15: Poorer Gaming Revenues In 1Q23, But Better Quarters Ahead

• Genting Singapore (SGX:G13)’ 1Q23 core adjusted EBITDA undershot expectations, falling 25% q-o-q from the seasonally strong 4Q22, and reflected lower non-gaming revenues and presumably a less favourable normalisation of luck factor. RWS’ gaming revenue significantly trailed rival MBS’.
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Results moderately below expectations... which we attribute mainly to poorer luck factor.

• Resorts World Singapore’s (RWS) 1Q23 adjusted EBITDA of S$191.7m (-25% q-o-q; +54% y-o-y) accounted for 16% of our full-year forecast. Gaming and non-gaming revenue fell 9% and 15% respectively from the seasonally strong 4Q22. The gaming division accounted for 70% of group revenue in 1Q23.
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Gaming volumes appear to remain resilient.

• Refer to Genting Singapore's announcements dated 12 May 2023 – it stated that RWS’ 1Q23 hold-adjusted GGR would have improved 12% q-o-q to S$530m. This works out to having a hypothetical 34% share of Singapore’s GGR, given rival Marina Bay Sand’s near-record 1Q23 GGR of S$1.0b.

Steadily unlocking potential in the coming quarters.

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Vincent Khoo CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-05-15 SGinvestors.io

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