Genting Singapore’s 1H25 revenue fell 10.4% y-o-y to S$1.2b, driven by lower contribution from both gaming (-12.3% y-o-y) and non-gaming (-5.8% y-o-y) segments.
1H25 results missed expectations on lower revenue and margins.
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On a q-o-q basis, 2Q25 revenue and adjusted EBITDA fell 6.0% and 20.3% to S$588.3m and S$187.9m respectively. 2Q25 adjusted EBITDA margin came in lower at 31.9% compared to 37.7% in 1Q25. The q-o-q weaker performance was mainly due to renovation disruptions, the temporary closure of S.E.A. Aquarium in May and Jun 2025, and higher operational costs.
Management attributes the post-COVID margin compression to higher taxes and increased labour costs, and expects margins to improve in FY26 once new facilities reach full ramp-up.
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A more meaningful uplift in EBITDA could only happen from FY26.
In Feb 2025, Genting Singapore opened Illumination’s Minion Land at Universal Studios, followed by the reopening of the Singapore Oceanarium (formerly S.E.A. Aquarium) and the launch of its new retail precinct, WEAVE, in Jul 2025.
Genting Singapore will also open The Laurus, rebranded from the Hard Rock Hotel in Oct 2025.
Management noted that early footfall to RWS has been encouraging, particularly for the Singapore Oceanarium and WEAVE, attracting both locals and tourists.
While Genting Singapore has been losing gaming revenue market share to peers, we believe the rollout of these projects and the phased completion of its RWS 2.0 attractions from the second half of 2025 could help Genting Singapore drive revenue growth and margins improvement, and regain market share. However, given the time required for these initiatives to ramp up, a more meaningful uplift in EBITDA could only happen from FY26.
Undemanding valuations.
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Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
