Genting Singapore - CGS-CIMB Research 2023-11-13: Surpassing Pre-COVID-19 Profit Levels

• Genting Singapore (SGX:G13)’s 9M23 adjusted EBITDA of S$797.8m (+49.7% y-o-y) was a convincing beat at 79.5%/80.6% of our/Bloomberg consensus’ FY23F estimates, driven by a combination of strong revenue growth and margin expansion in 3Q23.

Building on strong seasonality momentum in 3Q23

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Gaming revenues surpass pre-COVID-19 levels

• Gaming revenue grew 20.3% y-o-y/12.9% q-o-q to S$459.6m, which was 20.3% higher than pre-COVID-19 levels.
• See Genting Singapore's announcement dated 10 Nov 2023. In its announcement, Genting Singapore shared that its hold-normalised (adjusted for win rate) gross gaming revenue (GGR) increased 31% q-o-q to S$715.2m in 3Q23 and exceeded pre-COVID-19 levels for both VIP and mass gaming GGR, suggesting that win rates were more normalised in 3Q23 compared to 2Q23.

Non-gaming revenue catching up

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• We see continued upside to non-gaming revenues, given year-to-date tourist arrivals of 11.3m as of end-Oct were only 71.1% of the corresponding period in 2019.
• The opening of Hotel Ora in May 23, which added 389 keys, also contributed to the growth of non-gaming revenues, in our view.

Positioning itself for the changing Singapore tourism landscape

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TAY Wee Kuang CGS-CIMB Research | https://www.cgs-cimb.com 2023-11-13 SGinvestors.io

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