Genting Singapore - Maybank Research 2024-02-23: 4Q23 Could Have Been Better But Still Optimistic On FY24

• Higher-than-expected depreciation and a kitchen sinking exercise in 4Q23 caused Genting Singapore (SGX:G13)'s results to come in below our expectations. Yet, depreciation is non-cash in nature and many of the kitchen sinking items were one-off.

Disappointed on ‘high-ish’ depreciation

• - Read this at SGinvestors.io -
• The shortfall in core net profit was due to Genting Singapore's FY23 depreciation and amortisation coming in 21% above our expectation driven by accelerated depreciation as some attractions were discontinued to make way for the S$6.8b ‘RWS 2.0’ expansion plan.

‘Kitchen sinking’ weighed on 4Q23

• - Read this at SGinvestors.io -
• That said, Genting Singapore's 4Q23 non-gaming revenue seasonally eased 10% q-o-q following the peak summer holidays in 3Q23 and was within our expectations even though it negatively impacted EBITDA.

Still cautiously optimistic for FY24

• Read more at SGinvestors.io.

Yin Shao Yang Maybank Research | https://www.maybank-ke.com.sg/ 2024-02-23 SGinvestors.io

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