Singapore-based gambling operator Genting Singapore PLC is expected to post positive financial results for the fourth quarter of this fiscal year, according to two prominent brokerage firms.
This prognosis is based on Marina Bay Sands’ financial performance during the period in question.
Marina Bay Sands is operated by Las Vegas Sands Corp., which posted its fourth quarter financial results a few days ago. As for Genting Singapore, it manages the so-called Resorts World Sentosa, the only other integrated resort within the territory of the city-state.
Xin Jin Ling and Praveen K. Choudhary, analysts at Morgan Stanley Asia Ltd., stated in a special note that, similarly to Marina Bay Sands, Genting Singapore, too, is likely to post a growth in revenue generated from VIP players. They also pointed out that Resorts Wolrd Sentosa might mark a 7% rise in rolling chip as compared to the figures posted in the previous quarter.
According to the gaming analysts’ estimates, Genting Singapore might report a turnover of about SG$919 million or US$680 million. What is more, the company’s EBITDA is expected to reach SG$352 million or US$281 million, marking a 35% increase as compared to what was generated a year ago.
The Singapore-based company announced that it will post its financial report for the fourth quarter of this fiscal year on February 24.
Marina Bay Sands’ net revenue for the same period reached US$839 million, which is 27% more than the figures announced this time last year. The increase was said to have been driven by foreign mass players and a higher win rate. Turnover from VIP players, however, dropped by about 27% to reach US$10 billion. Despite the yearly decline, the venue generated 10% more than it did in the third quarter of this fiscal year.
Alpa Aggarwal and Tushar Mohata, analysts at the Japanese-based brokerage firm Nomura, commented in a special note from earlier today that Marina Bay Sands’ excellent financial performance hints at the possibility for similar results to be announced for Genting Singapore. The experts stated that the company might post better mass-market figures than it was initially expected. They attributed this to the seasonal recovery of the local gambling market.
Meanwhile, Genting Singapore is also planning to build a US$2.2-billion casino resort on the Jeju Island in South Korea. The operator is to work in collaboration with Landing International Development Ltd., a Chinese real estate company. Genting Singapore’s executives shared that the construction process is expected to begin at some point in the second quarter of 2015.
