- 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.
