Genting Singapore, operator of Resorts World Sentosa, is tipped to record Adjusted EBITDA of SG$268 million (US$201 million) in the three months to 31 March 2023, recovering to 83% of 2019 levels, according to investment bank Morgan Stanley.
The 1Q23 estimate, which is considerably higher than consensus of SG$252 million (US$189 million), comes after the only other integrated resort in Singapore, Marina Bay Sands recorded EBITDA of US$385 million in Q1 – representing 91% of 1Q19 levels. MBS also saw GGR climb to 114% of 1Q19.
Morgan Stanley’s positive prediction follows a similar read-through from Nomura, which said in a note last week that the MBS result bodes well for Genting Singapore – particularly given that GGR was already back to 90% of pre-COVID run rates even before China opened its international borders in January.
“We expect progressive improvement in overseas visitor arrivals from China,” Nomura’s analysts said. “Flight capacity between Singapore and Greater China is on the path to recovery.”
It has also been reported that Chinese tourism to Singapore is recovering faster than to other regional destinations.
Genting Singapore previously reported Adjusted EBITDA of SG$774.2 million (US$580 million) in 2022, up 73% year-on-year, with income attributable to shareholders in the company of SG$345.1 million (US$258 million), up 85%.
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