Malaysian investments specialist Maybank Investment Bank Berhad has reportedly predicted that gross gambling revenues for Asian casino operatorGenting Singapore Limitedwill likely remain at least partially depressed for at least the next three years.
According to a Tuesday report from Asia Gaming Brief, the corporate financing specialist used an official filing to detail that the casino firm’s ongoing slump precipitated by the appearance of thecoronavirus pandemicfrom late-2019 is forecast to continue until the end of 2024 owing to increased regional competition and an expected lack of gamblers from mainlandChina.
Recent results:
A subsidiary ofGenting Malaysia Berhad,Genting Singapore Limitedis responsible for the giant gambling-friendlyResorts World Sentosadevelopment inSingaporeand saw its aggregated revenuesfor the final six months of 2021decline by 17% year-on-year to about$381.5 millionas its associated gaming receipts crashed by 16% to sit just shy of$267.8 million. This took the company’s resultant half-year profit down by 49% to approximately$70.8 millionalthough the figure for the full twelve months rocketed by an impressive 164% to roughly$136.5 million.
Three-year trough:
Nevertheless,Samuel Yin Shao Yangfrom Maybank Investment Bank Berhad reportedly disclosed that he expects Genting Singapore Limited to experiencean around 2% dip in aggregated earnings for 2024. This purportedly came after the analyst had improved his earlier forecast covering the next two financial years owing to Singapore’s earlier-than-expected decisionto open its borders to outside tourists from last month.
Evolving environment:
Yin reportedly pronounced that ‘China has changed the Asian gaming landscape’ with the regional VIP market now likely to be seriously hurt by this nation’s March of 2021 decisionto make cross-border gambling a crimepunishable byan up to ten-year prison term. The expert purportedlywent on to divulgethat Genting Singapore Limited will probably moreover be negatively impacted byincreased competition in the lucrative premium mass-market segmentfrom newer facilities inCambodia,Singaporeand thePhilippines.
Complicated contingencies:
Singapore-listed Genting Singapore Limited reportedly earlier pledged to spend upwards of$3.3 billionin order to expand itsResorts World Sentosaproperty via the addition ofa plethora of non-gaming amenitiesincluding an enlarged aquarium. However, Yin purportedly noted thatthis plan could be put at riskshould the nearby nation ofThailandopen up its casino market andbegin attracting large numbers of Chinese mass-market gamblers.$GENTING SINGAPORE LIMITED(G13.SI)$
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