Genting Singapore’s Resorts World Sentosa should outperform its local rival Marina Bay Sands (MBS) for the September 2024 quarter, according to Nomura analysts, citing the latter’s subdued Q3 results announcement last week.
MBS parent Las Vegas Sands revealed during its 3Q24 earnings call that revenues at the iconic property had declined 10% year-on-year to US$919 million, affected by ongoing renovations in Tower 3, and Adjusted EBITDA by 17% to US$406 million, impacted by low VIP hold.
Noting that the results appear to be a one-off, Nomura’s Tushar Mohata and Alpa Aggarwal said they expect RWS to report a better head-to head performance in Q3 “due to the seasonal peak in non-gaming revenues along with gaming revenue improvement.”
They added that the impending opening attractions like Minion Land, Oceanarium, Central Lifestyle Connector and new F&B outlets, as well as a new all-suite hotel, in early 2025 will also provide a growth runway for next year.
“We reiterate our ‘Buy’ rating on Genting Singapore after MBS’s announcement, as we think investors are likely to look beyond to a 2H24 recovery and expected positive tailwinds from China stimulus,” they wrote. As such, rolling chip volume, mass table drop and slot handle are all expected to show year-on-year growth in FY24 “as we expect progressive improvement in overseas visitor arrivals from China.”
Also maintaining its “Buy” rating on Genting Singapore is Citigroup, noting that it expects RWS to be one of the major beneficiaries from the Singapore-China visa-free arrangement and a solid event line-up in Singapore.”
