Genting Singapore Unable to Find Opportunities to Expand

Genting SingaporeGenting Singapore looks after the operation of Resorts World Sentosa, one of the two legalised casinos in Singapore. The other casino is Marina Bay Sands which is owned by Las Vegas Sands Corp.

Based on the reports submitted by Sanford Bernstein, Genting Singapore has done extremely well in the past two quarters. The firm further stated that the company has made a whopping profit of $181 million in the first quarter of this year.

As compared to the similar period last year, Genting Singapore has registered a net growth of 17 percent in its overall profits.

Genting Singapore is a subsidiary part of Genting Group which is a Malaysia-based company. The company has done reasonably well as compared to what the analysts Sanford Bernstein had speculated related to EBITDA or Earnings Before Interest, Taxation, Depreciation and Amortisation. However, the gross gaming revenue growth of the company was less as compared to what the analysts had predicted.

A report is released by Sanford Bernstein in which it has stated that in spite of the better performance in the past two quarters, it is difficult on part of Genting Singapore to create a new opportunity that would allow the company to grow and expand its revenues in Singapore. The brokerage firm has also decided to lower the predicted net revenue of the company by 2% for the year 2017 which comes to approximately $2.32 billion.

Sanford Bernstein’s analysts have further stated that the forecasted revenue is curtailed because of low non-gaming and VIP gaming revenue and sluggish mass market segment. The analysts have further pointed out that the VIP market segment will be terribly affected by making changes in the VIP commission pay structure because the new pay structure is not very impressive.

The analysts from Sanford Bernstein have made the following statement:

EBITDA has been steadily improving due to final write down of un-collectable VIP receivables, cost cuts and better VIP commission ratio. Although the operating cost structure has improved, we still see the lack of growth in the Singapore business.

Genting Singapore has made its intentions clear that just like other casinos, it also wants to join the recently legalised casino industry in Japan. Regulators are working to come up with a proposal that will state the eligibility criteria for getting a casino license, location for new casino and tax rates operators need to pay. The industry analysts are of the opinion that only two casino license would be approved by Japan and the country would like to check how things work out before going ahead in offering additional casino licenses.

The reports submitted by the Sanford Bernstein’s analysts clearly show that Genting Singapore would have a tough time to procure a casino license because of the stiff competition from other players in the market like Las Vegas Sands Corp and MGM Resorts.

Jay Stevens

Jay Stevens

Hi, my name is Adam Jay Stevens. Welcome to Top10-CasinoSites. Explore the online casino world with my site.


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