Genting Singapore to record sharp 2Q24 EBITDA drop due to seasonal factors 

Genting Singapore, the operator of Singapore’s Resorts World Sentosa (RWS), is expected to see a significant decline in quarterly EBITDA for 2Q24, notes Morgan Stanley.

According to an investment memo, analysts from Morgan Stanley forecast that the property will achieve SG$245 million ($180.9 million) in EBITDA for the three months ending June 30th.
This represents a sequential decline of about 35 percent compared to the previous quarter and approximately 80 percent of the EBITDA level observed in the second quarter of 2019, before the pandemic.
Analysts Praveen Choudhary and Gareth Leung note that the expected decrease is due to seasonal factors, lower visitor numbers compared to the previous quarter, and a 23 percent reduction in operational room capacity quarter-on-quarter.
Recently, an oil spill from vessels on June 14th has affected various shorelines in Singapore, including Sentosa. 
The brokerage mentions that while the beaches remain open, water activities are currently prohibited. However, these beaches ‘may not be essential’ to most RWS visitors.
Genting Singapore’s performance in 1Q24 was robust, achieving revenue of SG$784.4 million ($580 million) and adjusted EBITDA of SG$369.5 million ($273 million).
The group's gaming revenue grew by 69 percent year-on-year to SG$576 million ($425.6 million) in the first quarter. Quarter-over-quarter, gaming revenue also demonstrated strong growth, increasing by 31 percent.

Bricks & Mortar Quarter EBITDA Asia Visitors Decrease

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