- 2Q24 results below expectations due to a significant fall in VIP win rate and higher-than-anticipated bad debt losses. Genting Singapore (SGX:G13) reported adjusted EBITDA of S$201.3mil in 2QFY24, representing a substantial decline of 46% q-o-q and 23% y-o-y, respectively.
- - Read this at SGinvestors.io -
An acute decline in GENS’s VIP win rate & increased bad debt loss
- An acute decline in the VIP win rate (2.9% in 2QFY24 versus theoretical hold of 3.3%, 4.6% in 1QFY24, and 4.0% in 2QFY23) and increased bad debt losses (1HFY24: S$101.1mil, +10% h/h, +213% y-o-y) led to Genting Singapore’s underperformance during the period.
- Weaker sequential results in 2QFY24 was partly driven by seasonality, with tourist arrivals lower by 11% q-o-q.
- - Read this at SGinvestors.io -
- Meanwhile, non-gaming revenue was flat y-o-y but dipped by 9% q-o-q in 2QFY24 due to the lack of contribution from Hard Rock Hotel, largely meeting expectations.
Adjusted EBITDA margin shrank to 35.2%
- 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/ 2024-08-15
Previous report by DBS:
2024-05-14 Genting Singapore - Lady Luck Shines Again.
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
