Genting Singapore, owner and operator of Resorts World Sentosa, reported an 85% increase in income attributable to shareholders in the company to SG$345.1 million (US$258 million) in FY22, boosted by soaring revenues in the second half of the year.
The company released its financial results for both the year and the six months ended 31 March 2022 on Monday, with FY22 revenues climbing by 62% over 2021. Notably, Genting Singapore’s revenues in the second half of the year were 60% higher than H1 at SG$1.06 billion (US$794 million), of which gaming contributed SG$753.7 million (US$566 million) and non-gaming SG$307.8 million (US$230 million). For the full year, gaming revenues reached SG$1.23 billion (US$921 million), up 53% year-on-year, and non-gaming SG$490.8 million (US$367 million), up 90%
Adjusted EBITDA of SG$774.2 million (US$580 million) for the year, which represented a 73% year-on-year increase, included SG$505.4 million (US$548 million) in H2 and SG$268.7 million (US$292 million) in H1.
Commenting on its results, Genting Singapore said it was “cautiously optimistic” of achieving full recovery from the impact of the COVID-19 pandemic in the medium term, noting that it was now significantly outperforming the COVID years.
It also confirmed the impending opening of the revamped Festive Hotel at RWS this coming May, which will add 389 rooms to the resort’s overall hotel inventory, while expansion works under the property’s 2.0 project are well underway via “the construction of the Singapore Oceanarium, Minion Land at Universal Studios Singapore, and supporting infrastructure facilities to cater to the overall expansion of RWS.”
However, “flight capacity and economic uncertainties will moderate the pace of [RWS] recovery.”
In a note, Nomura analysts said they estimate RWS earned 40% market share in 4Q22, with VIP accounting for 60% of the property’s gaming revenues.
“Our estimates suggest that overall GGR is roughly back to ~90% of pre-COVID levels, which is impressive given the extremely limited inbound travel from Greater China market to Singapore,” said analysts Tushar Mohata and Alpa Aggarwal.
“Going forward, with full border reopening in China, we expect VIP visitations to recover first, followed by mass market when airfares ease and flight capacity ramps up.”
Nomura has raised its FY23 and FY24 EBITDA forecasts for Genting Singapore, to SG$1.01 billion (US$756 million) and SG$1.12 billion (US$839 million) respectively.
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