23rd Feb 2012 Thur
News extracts
confirmed That Genting Resorts World Sentosa Has Stagnated In Market Growth
The local Singapore news has reported a so-so performance of RWS (Resorts World Sentosa) in their 4th quarter 2011.
Mainly, RWS produced the following 4th qtr performance below analysts’ expectations.
- Daily revenue amounting to S$8.5m; against MBS’ S$8.9m
- Ebitda of S$405,940,000 for the 4th quarter, 2011 as against MBS’ S$426,900,000
- Genting Singapore 2011 full year revenue up by 18% as against its 2010 reported
It is expected that RWS casino revenue is about 75% of its total revenue generated. With the final results announced, Genting Singapore stock price dropped 1 cent to S$1.665
The 4th quarter result clearly shows that Malaysian casino patrons could not sustain the growth alone
Professional Ground panel assessed that,
Both the IR casinos pie in this region would continue to grow with ”constraints & limited” potential; unless the Singapore govt. opens up more freely on the junket operation. Though tourists (less Malaysians) numbers have increased over the last two years, the amount of casino revenue from this group is very limited.
It is estimated that on daily basis, Singapore local casino patrons account for 30% of visitation; while casino revenue contribution from domestic market is estimated to be approximately up to 40 – 45% overall.
