Genting Singapore Down by 50% In Profit

Posted: November 12, 2014 in Uncategorized


Comment by Professional Ground

Indeed we have No Comment at all.
The penalists had detailed key factors on why Genting Singapore (RWS) casino would doom in our previous articles and commentaries.

VIP revenue dropped by 21% yoy. With lack of non~negotiable chips turnover, the situation would only get worse in the coming quarters. Mass gaming floor is already “dried Up” due to low domestic gaming demand.
3rd quarter EBITDA was S$254m, dropped by 27% yoy.

Essentially the bad situation surrounding Genting Singapore will not go away till mid 2015. Another round of analysis and projection will be conducted by then. From sources, China’s reform and smashing up corruption will continue at least through the year 2017. So, don’t expect any relaxing on the “flow of funds” from mainland China to Singapore casinos…
Hence, one can forget about growth in VIP volume for quite a long while.

And, for Southeast Asian VIP markets the casinos need to dig into huge CCF facility and huge credit risk exposure, which is not a sustainable operation.

Only recommendation (for Genting Singapore stock):  SELL
*target price ~ 80 cents


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