Genting Singapore 2nd Half Income Likely Flat Or Lower Amid Covid Crisis
Despite the likely relaxation of Covid 19 restrictions in Singapore, Genting Singapore Ltd, is expected to report its second-half earnings at the same levels or even below the first-half earnings in 2021, according to banking group Nomura.
In a filing made on Thursday, the company realized SGD88.2 million net profit for the first half, citing an increase in gaming revenue, compared to 2020, where they registered a loss of SGD116.7 million.
The analysts stated that Genting Singapore recorded an impairment reversal of SGD25 million in the first half of 2021. They believe this reversal was instrumental to the firm’s EBITDA increase in the second quarter.
However, this data is not yet clear since Genting Singapore reports on a half-year and full-year basis.
Meanwhile, the government expects to ease travel restrictions by September and is on course to mass vaccinate its population as a protective measure against the coronavirus threat.
According to investment analysts, this step is critical since the state’s 2 casino resorts, Marina Bay Sands and Resorts World Sentosa, depend on foreign tourists for much of their gaming revenue. Currently, they are relying on the limited local market.
The rise in RWS gaming revenue
Bernstein analysts Vitaly Umansky, Louis Li, and Kelsey Zhu earlier stated that RWS’s non-gaming revenue declined by 28% quarter-on-quarter. But their gaming revenue was up by 4% quarter-on-quarter.
They observed that the resort did significantly better in gaming revenues than competitor, Marina Bay Sands.
An analyst at Maybank Investment Bank Bhd, Samuel Yin Shao Yang, stated on Friday that there may be an improvement in the fourth-quarter 2021 earnings as the state is set to gradually reopen its borders by then upon reaching the herd immunity stage through the vaccination program.
But for now, the analysts add that the main focus will be on the company’s Yokohama license bid.
In June, the firm was shortlisted to get a casino license for an integrated resort in Yokohama, Japan, along with global casino operator Melco Resorts &Entertainment Ltd.