Genting Singapore, operator of Resorts World Sentosa (RWS), reported revenue of SG$626.2 million (US$481 million) in the first quarter of 2025, down 20% year-on-year although 2% higher than in 4Q24 on seasonality.
The subdued results, which came in slightly below expectations, were largely attributed to lower hotel inventory while the company upgrades its offering as well as a weakened macro environment. Gaming revenue of SG$437.5 million (US$336 million) was down 24% year-on-year but up 5% quarter-on-quarter, while non-gaming revenue of SG$188.5 million (US$145 million) was down 10% year-on-year and 4% sequentially.
Adjusted EBITDA of SG$235.8 million (US$181 million) was also down 36% year-on-year but up 5% versus the December 2024 quarter, with net income of SG$145.0 million (US$111 million) down 41% year-on-year and up 2% quarter-on-quarter.
In its 1Q25 results announcement, Genting Singapore said its gaming business benefited from the Chinese New Year festive season while the non-gaming business experienced softer demand due to the continuous impact of a strong Singapore dollar and ongoing renovation and upgrading works at RWS as part of the RWS 2.0 transformation project.
Nomura analysts added that although the year-on-year weakness was expected due to the lower hotel room inventory and weakened macro environment, overall the decline was more than they had forecast. They also estimate the company’s GGR market share for the quarter at 33% after its Singapore rival, Marina Bay Sands, recently reported an impressive Q1 performance.
Despite losing ground, it is anticipated that Genting Singapore will recover in the second half of the year as refurbishments to its existing hotel inventory are completed and new attractions opened to the public.
These will include the all-suite The Laurus, a Luxury Collection Resort by Marriott in July, a new retail and dining precinct called WEAVE with around 40 stores and the Singapore Oceanarium in Q3.
“2Q25 earnings will continue to be impacted by lower hotel rooms inventory, higher costs as Genting Singapore is hiring additional staff to prepare for the opening of attractions and hotel later in the year and a seasonally low period,” said Nomura’s Tushar Mohata and Alpa Aggarwal in a note.
“However, we expect earnings to ramp up after the opening of hotel rooms, the Singapore Oceanarium and retail space in early 3Q25. As per management, EBITDA margins are also expected to improve in 3Q25-4Q25 once the operations of the new openings stabilize.”
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