Genting Singapore which is one of the two Singapore gaming properties is also the operator of the Resorts World Sentosa. Currently, Genting is facing a slowdown due to the sluggish local economy as well as low VIP visits according to Affin Hwang analysts.

In the nine months of this financial year, Genting has continually registered low numbers. The core profit of the gaming property registered a decline of 14% compared to last year’s turnover.

The core profit after tax and interest deductions was at $388.67 million though below expectations was within the forecasting range. This was quite lower than the $435 million revenue before the deductions.

While Genting is struggling to improve its numbers amidst the city-state challenges, Marina Bay Sands (MBS) is doing exceptionally well.

MBS which is Singapore’s second gaming property is responsible for generating almost a third of the $1.28 billion in earnings of the parent company. The figure represents the earnings before interest, tax, depreciation and amortization (EBITDA).

MBS is operated by a unit of Las Vegas Sands (LVS) which is the Marina Bay Sands Pte.Ltd. LVS, Genting’s rival is not facing home market challenges and is even moving forwards with its expansion plans.

The multi-billion dollar plan will include the construction of the fourth MBS tower. Following these plans, the gaming property’s suite capacity will be expanded by 40%. Expansion plans will also include an upmarket entertainment arena which is expected to bring in more revenue and in the long run contribute to growth.

Luckily for Sands, it remains unaffected by the Singapore mass market trials unlike Genting. According to Sheldon Adelson, LVS CEO and chairman, the mass win per day were doing fine while the rolling volumes have increased compared to last year.

While assessing Genting Singapore’s second quarter performance, Affin Hwang attributed the decline of mass market gamblers to high entry fees. The Investment Bank concluded that charging higher entry fees to locals in the July to September period was what greatly affected Genting.

In this same period (July to September), a win rate of 3.7% had been achieved and it is what helped cover up Genting’s weak profitability.

As for LVS executives the issue of higher entry fees did not surface. Rob Goldstein who is the LVS Chief Operations Officer focused more on the masses reactions to its role in the Singapore market.

According to recent financial results, LVS will retain its position as the leading Casino Gaming Company in the whole of Asia. LVS operates Marina Bay Sands located in Singapore as well as five other resorts in Macau. The firm’s operations have been proved to be effective in bringing more investors on board.

With the economic slowdown in Singapore, GenS is expected to be affected even further. The GDP of Singapore city-state had a slight increase of 0.1% which makes it a likelihood of a recession taking place.

Affin Hwang maintains that the local and regional economic challenges will continue to affect Genting’s overall gaming volume. The VIP and mass segments are also forecasted to remain weak.

Source: https://www.casino.org/news/sands-is-the-dominant-player-in-asia-analysts-dont-see-that-changing/

Basheera Manaar is a freelance writer covering news related to Land Based Casinos in United States. When she is not informing you about the gambling world, you will find her busy interacting with nature, people and animals. She recently graduate from Nairobi University with a degree in Journalism.


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