KUALA LUMPUR (Jan 7): Genting Singapore may bid for casino and integrated resort licenses in Thailand if the Thai government opens up the industry, according to Maybank Investment Bank Research (Maybank IB). It is said to be expensive.
Citations from research institutions and industry magazines Inside Asian Games (IAG) The company said it would consider establishing a joint venture for Thailand’s IR license based on its previous track record in South Korea and Japan.
“While we acknowledge that an IR in Thailand is likely to pose a greater threat to Genting Singapore than[Resorts World Genting operator]Genting Malaysia, it is likely that Genting Singapore will partially eliminate competition. History shows that they are willing to expand overseas in order to stop them.
“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 from competitors.
“Therefore, we do not discount the possibility of Genting Singapore setting up a joint venture to bid for Thailand’s IR license if Thailand liberalizes its casino industry,” it said.
Maybank IB expects Genting Singapore’s revenue to return to pre-COVID-19 levels in 2024, shaking off the burden of recent tax hikes thanks to the return of Chinese tourists.
“We expect most of this year’s gaming revenue growth to come from Chinese tourists.
“Even before the third quarter of 2023, thanks to the wealth created by new immigration and rising real estate prices, mass market (traditionally around 75% of revenue) %) had already reached pre-COVID-19 levels.
“As Chinese tourists returned en masse in Q3 2023, mass market gaming gross revenue was 8% higher than the 2019 quarterly average, and VIP count was 36% higher than the 2019 quarterly average. In fact, the VIP value in Q3 2023 was S$11.3 billion, the highest since Q2 2015.”
Maybank IB expects this growth to strengthen and continue in FY2024 as seat capacity is restored for flights from China to Singapore.
“December 2023 seat capacity from China to Singapore now stands at 87% of December 2019 levels. Singapore also recently granted 30 days of visa-free entry to Chinese travelers. , we hope that Chinese RWS visits will fully recover this year.
“Longer term, we expect Resorts World Sentosa (RWS) VIP volume and mass market gaming gross revenue to be approximately 20% above 2019 levels.”
Maybank IB expects Genting Singapore’s revenue to reach S$2.66 billion (US$2 billion) in 2024 and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of S$1.25 billion (US$900 million). It is estimated to reach US$41 million.