No Surprises About Genting Singapore’s Poor Performance

Posted: May 14, 2015 in Uncategorized

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Media report commented By:  Professional Ground

According to extracted media report of Singapore, Genting Singapore’s Q1 net profit has plunged 73%.
Those who are following the reported comments by Professional Ground, would not take this outcome with any surprises.

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As we have been closely following the way Genting Singapore manages its IR casino business and operations; and all the while we have mentioned that Genting Singapore fails in their VIP business organization with so call in-house credit extension as well as International Marketing Agents. The main reason for continuous or performance plugged by VIP programs is due to, unsustainable high volume non-negotiable chips of their out-molded business model adopted from Genting’s old days.

Mass market segments are also plugged by high restriction of domestic casino patrons and, low casino floor efficiency.

China market no longer providing sustainable premium players as in the good old days.
The Junket operators from Hong Kong and Southern China are very fragmented and under tremendous suppression since 2013. The bad weather isn’t going away soon.

We assess that Genting Singapore will continue to weather through such “bad luck” (high credit losses and very low Win %) for the foreseeable future.

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