- Genting Singapore (SGX:G13) reported an adjusted EBITDA of S$369.5mil (+62.2% q-o-q, +92.7% y-o-y) in 1Q24, surpassing street expectations, with 1Q24 earnings accounting for about 32% of the consensus' full-year estimate.
1Q24 results above expectations due to higher gaming volumes and incredible luck factor.
- - Read this at SGinvestors.io -
- Despite the exceptionally high VIP win rate, Genting Singapore’s adjusted EBITDA margin of 47.1% in 1Q24 only slightly exceeded our expectations, likely due to elevated bad debt losses during the period.
Net gaming revenue reaches highest level since 2Q14; non-gaming sluggish.
- - Read this at SGinvestors.io -
- Inbound traffic from China was particularly strong during the quarter, soaring to 82% of 2019’s level in 1Q24, up from 46% in 4Q23, as visa-free travel was extended to Chinese citizens from February 2024.
- While Genting Singapore’s mass-gaming market share continues to be stable against MBS in 1Q24, the group regained significant ground in the VIP segment, and now has around a 50% share of the VIP market (1Q23: 39%).
- Non-gaming revenue of S$208.3mil was relatively flat on a sequential basis (+1.0% q-o-q), likely pressured by a lack of offerings and ongoing renovations across its various attractions and Hard Rock Hotel, which has reduced hotel inventory.
Impact of China’s warning against overseas gambling in Singapore remains uncertain, though we foresee limited downside risk.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Jason SUM CFA DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-05-14
Read also DBS's most recent report:
2024-08-15 Genting Singapore - Earnings Fall Short, Dividends Shine.
Price targets by 2 other brokers at Genting Singapore Target Prices.
Listing of research reports at Genting Singapore Analyst Reports.
Relevant links:
Genting Singapore Share Price History,
Genting Singapore Announcements,
Genting Singapore Dividends & Corporate Actions,
Genting Singapore News Articles