Genting Singapore is tipped to outperform its Singapore rival Marina Bay Sands (MBS) in the mass market segment, according to Morgan Stanley analysts, with property EBITDA estimated to come in at SG$270 million when the former releases its 2Q revenue results in the coming weeks.
The prediction follows this week’s earnings report from Las Vegas Sands, which saw MBS record its second best quarter since 2010 including property EBITDA of US$492 million, up 35% sequentially. Those results were somewhat misleading given the rolling chip win percentage was 4.42%, with Morgan Stanley noting that on a hold-adjusted basis, property EBITDA was down 1% sequentially to US$386mn due to mass market failing to grow.
Analysts Praveen Choudhary, Alex Poon and Thomas Allen are tipping Genting Singapore property EBITDA of SG$270mn for the three months to 30 June, which would represent a 6% sequential decline but a 119% increase on the same period last year.
“Genting Singapore could do slightly better in mass compared to MBS, similar to 1Q17, as Genting Singapore has increased focus on the premium mass segment since 2016,” Morgan Stanley said. “While Genting Singapore remains cautious on granting credits, we expect VIP to surprise on the upside but bad debt provisions to remain under SG$20 million. We do not expect any interim dividend as last year’s was declared after 3Q16 results.
“Our 2017 and 2018 EBITDA estimates for Genting Singapore are 6 to 7% above consensus.”
