Genting Singapore - UOB Kay Hian 2023-08-11: Lucky Charm Returns In 2Q23

• Genting Singapore (SGX:G13)’s 2Q23 results reflect a broad spectrum of operational improvement across all business segments.
  • Gaming revenue charted solid recovery as VIP luck factor normalised from 1Q23’s low base.
  • - Read this at SGinvestors.io -
• We remain upbeat on better earnings momentum for Genting Singapore in 2H23, as elevated airfares and flight capacity constraints ease gradually. Maintain BUY and target price of S$1.25.

2Q23: Fantastic set of results from slow start in 1Q23.

• Resort World Sentosa’s (RWS) 2Q23 revenue (+23% q-o-q, 71% y-o-y) and EBITDA (+36% q-o-q, +81% y-o-y) jumped impressively as hoped. This was the best quarter since the onset of COVID-19 with revenue and net profit recovering to about 94% and 89% of 2Q19 levels.
• - Read this at SGinvestors.io -

Gaming statistics buoyed by a rebound in visitations and better VIP luck factor.

• Gaming revenue in 2Q23 improved ~20% q-o-q to 92% of pre-pandemic levels, presumably reflecting normalisation of 1Q23’s low-base VIP win percentage (2Q23: 3.95%, 1Q23: 2.79%) and higher betting volume.
• On a hold-adjusted basis, GGR improved ~3% q-o-q to S$547m, reiterating our view that industry earnings are recovering.

Non-gaming revenue continues its winning streak.

• Read more at SGinvestors.io.

Jack Goh UOB Kay Hian Research | Vincent Khoo CFA UOB Kay Hian | https://research.uobkayhian.com/ 2023-08-11 SGinvestors.io

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