- We cut earnings on a slower recovery momentum despite remaining positive on Genting Singapore (SGX:G13)’s bargain valuations. Maintain BUY rating on Genting Singapore with a lower target price.
- - Read this at SGinvestors.io -
2Q24: Weak set of results pivoting from 1Q24’s strong start.
- Resort World Sentosa (RWS) reported 2Q24 revenue of S$571m (-27% q-o-q, -4% y-o-y) and EBITDA of S$201m (- 46% q-o-q; -23% y-o-y). Earnings were weaker q-o-q mainly due to seasonally softer visitations, lower VIP hold and absence of mega events.
- - Read this at SGinvestors.io -
Operating statistics dragged by lower visitations and normalising VIP luck factor.
- Genting Singapore's gaming revenue in 2Q24 deteriorated about 34% q-o-q and merely represented 87% of pre-pandemic level, presumably reflecting the normalisation of high-base VIP win percentage to 2.91% (2Q23: 3.95%/1Q24: 4.62%) and softer betting volume (gross gaming revenue -29% q-o-q).
- Meanwhile, non-gaming revenue fell 11% q-o-q, reflecting much lower daily available rooms of about 1186 rooms (1Q24:1451 rooms) following the closure of Hard Rock Hotel in early-March for renovations and rebranding. Meanwhile, hotel occupancy rate of 85% (1Q24: 85%) and average room rate of S$495 (1Q24: S$480) are flattish q-o-q.
Encouragingly raised interim dividend to 2 cents.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jack Goh UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-08-15
Read also UOB's most recent report:
2024-11-08 Genting Singapore 3Q24 - Unexpected Setbacks.
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
