Genting Singapore posted a 77% increase in first quarter net income as a surge in VIP play combined with good luck to boost gaming revenue 29% to S$671.9 million (US$537.5 million).
The Singapore-listed owner of Resorts World Sentosa (G13.SI/GENS) earned $257.6 million in the three months ended 31st March, up from $145.4 million in the same period last year.
The difference was the property’s ability to capture 59% of the market’s rolling chip volume at a win rate at the higher end of the normalized range (3%), which also contributed most of the 60% jump in EBITDA achieved during the quarter. EBITDA was S$400 million.
Union Gaming Research Macau characterized the VIP results as “surprising,” and notes that “Management continues to be cautious in regards to all of the key feeder markets for VIP (China, Malaysia, Indonesia) for various reasons.”
The brokerage had expected VIP growth at Sentosa to be flat for the year but has raised its forecast in light of the Q1 performance to +8%.
The firm, however, professes an “increasingly negative outlook” for Singapore’s mass market and expects GGR to decline 5% this year. It had earlier forecast a 3% decline.
First-quarter non-gaming revenues at RWS, which includes the hotel and the Universal Studio theme park, rose by a much smaller 6% year on year to S$156.4 million; and despite the improved overall performance, the resort continues to lag behind rival Marina Bay Sands, which benefits from having a location much closer to Singapore’s city center. MBS owner Las Vegas Sands last month reported US$680.4 million (S$850 million) in gaming revenue during the January-March quarter, an increase of 6.3% from a year ago.
MBS also posted higher hotel occupancy of 99.3% at an average room rate of US$428 a night (S$535 million) against RWS’ 92% at an average of S$409 (US$327).
