Genting Singapore 4th Qtr Ebitda Dropped By 28%!

Posted: February 21, 2014 in Uncategorized

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Local news extracts
Assessment by:  Professional Ground expert panel

Genting Singapore’s 4th quarter (2013) Ebitda reported as S$256m, a drop of 28%. Whole year Ebitda achieved as S$1.173b, a drop of 14%.

Although its casino still hold on to about 20,000 visitors daily, Resorts World casino revenue has dropped 19% over the last quarter.

Yesterday Genting Singapore share price ended at S$1.40

According to its report, though VIP volume (?) increased in the 4th quarter, however the win % was low and hence, affected the overall casino revenue.

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Our recommendation:  SELL.
(The share performance in 2014 will not improve. This is due to poor casino floor efficiency compounded by VIP business lacking consistent high turnover & extremely low win %).
Based on the trends, Singapore casino landscape has saturated. Coupled with very old style of casino management, Genting Singapore will not attain any new breakthrough in their gaming business. They continue to play a second fiddle to Marina Bay Sands.

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