Genting SingaporeI am the operator of Resorts World Sentosa, stands as a potential frontrunner for Integrated Resort (IR) License in Thailand If the government chooses to deregulate the industry, analysts say.
Owned by Malaysian billionaire Lim Kok Thai, Genting is one of the world’s top casino operating companies focusing on the Thai market. Due to the rapid increase in Chinese tourists, New Straits Times report. MGM Resorts International, Galaxy Entertainment Group Limited, Las Vegas Sands The company is also reportedly considering business in Thailand.
“in the end, Genting currently operates in Singapore and Malaysia, they have been pioneers since 1965. They have operational know-how, local market knowledge, geographic and business networks.their Integrated resort, theme park and entertainment model is a compelling proposition to the Thai government” Tradeview Capital Sdn Bhd chief executive officer Ng Zhu Hann was quoted as saying in the report.
Analysts emphasize that a number of major companies are eyeing the Thai market. Large numbers of foreign tourists flow in each year.Thailand is attracting attention as a highly popular travel destination. In 2023, the number of foreign tourists will reach 27 million.
”Tourism is the third largest contributor to gross development output for the country.Therefore, if there is a casino, the number of tourists is likely to increase further,” Han said.
Maybank Investment Bank Research (Maybank IB) Analyst Samuel Ying Hsiaoyang has suggested that Genting Singapore may make a joint bid for the Thai IR license.
“While we acknowledge that a Thai IR is likely to pose a greater threat to Genting Singapore than Genting Malaysia, history points us to the following. Genting Singapore willing to expand overseas to partially stem competition” Han said, according to the report.
“Recall that Genting Singapore sought to expand into Jeju Island, South Korea, until November 2016 and Yokohama, Japan, until September 2021, partly to prevent competition with them. We will not discount the possibility of Genting Singapore setting up a joint venture to bid for Thailand’s IR license.. ”
Despite recent tax increases, Maybank IB expects Genting Singapore’s revenue to return to pre-COVID-19 levels in 2024 due to a resurgence in Chinese tourists. VIP volumes recorded a significant increase in Q3 2023. Reaching S$11.3 billion ($8.41), According to Maybank IB, this was the highest amount since the second quarter of 2015.
Genting Singapore reported. Net profit for the third quarter ended September 30, 2023 increased by 59% to S$216.3 million ($161 million). compared to S$135.8 million ($101 million) in the same period last year. Revenue rose 33% to S$689.9 million ($514 million). Gaming revenue rose 20% to S$459.6 million ($342.3 million), while non-gaming revenue surged 68% to S$230.1 million ($171.4 million).
Maybank IB expects steady growth to continue in 2024 The number of seats on flights from China to Singapore will be restored.