Operator News

Singapore – Maybank raises yearly estimate for Resorts World Sentosa by 78 per cent

By Phil - 5 August 2022

Analysts at Maybank Securities have raised its 2022 estimates for Genting Singapore’s Resorts World Sentosa by 78 per cent following the ‘encouraging’ results posted by rival operator Marina Bay Sands in its second quarter.

With Las Vegas Sands posting EBITDA of US$319m, Maybank believe Resorts World Sentosa will see a similar recovery after the country reopened its borders and removed COVID restrictions in April.

Maybank’s Yin Shao Yang said: “Our read of MBS’s 2QFY2022 results is positive for Genting Singapore’s Resorts World Sentosa (RWS). Operations recovered faster than expected even without Chinese gamblers. While our long-term earnings estimates are little changed, there is room for positive earnings revisions if China eases its zero-Covid policy.”

He hailed Marina Bay Sands’ results as a key indicator the market had improved.

“Though a quarter earlier than we expected, they are broadly in-line with our expectation that industry VIP volume and mass market GGR will recover to 75 per cent and 85 per cent of 2019 levels in the long term. LVS stated that gaming operations will not return to 100 per cent of 2019 levels until China relaxes its zero-Covid policy,” he explained.

With these results, Yin has raised his estimated FY2022 earnings for Genting by 78 per cent.

Citi Investment Research were more ‘conservative’ in their estimates predicting a recovery of around 61 per cent of its pre-pandemic levels.

Genting SkyWorlds theme park meanwhile has started business slowly with 3,000 to 4,000 visitors daily, around half of what was expected.

Citi Investment Research said: “We understand that long wait times for certain rides caused by technical issues are the culprit. Nonetheless, we are assured that the technical issues will be ironed out. Genting SkyWorlds has also hired some experienced theme park staff to operate it better.”