See: Genting Singapore reports 24% rise in 2Q18 earnings to $177.6 mil
Estimated VIP market share grew to 50% as Genting Singapore managed to keep a hold on its VIP portfolio. Overall estimated 1H18 VIP GGR grew 29.5% with market share rising to 49.4% versus 1H17 VIP GGR of $389.5 million and market share of 34.9%.
Estimated 2Q18 mass GGR and market share slipped 2.8% to $364.7 million and 37.8% versus 40.3% in 2Q17, respectively. While CGS-CIMB already expected softness in market share due to the flat RM/S$ in 2Q18, it believes Genting Singapore market share was also impacted by regional competition like the opening of Naga 2 in Cambodia.
Looking ahead, Genting Singapore says it is looking to improve the mass volumes. Overall estimated 1H18 mass GGR was relatively unchanged -- just up 1% -- while market share settled at 39.7% versus 39.5% in 1H17.
2Q18 trade receivable impairments were significantly low at $0.48 million versus $14.7 million in 2Q17 with some write-backs. Management guided that while it is has loosening its credit policies, it plans to do it in a measured way.
“While 1H18 trade receivable impairments of $9.5 million account for only 24.5% of our full-year estimate of $39 million, we keep our forecasts unchanged in the event this normalises in 2H18F,” says lead analyst Cezzane See.
Genting Singapore reiterated its commitment to a Japan investment, and is confident that it will be able to put a strong case despite the strong competition. It expects a request for proposal (RFP) by FY20-21F, which implies construction would potentially start earliest in FY21F, says CGS-CIMB.
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“Out of the intended three sites sanctioned by the recent bill, Osaka and Yokohama sites seem pretty certain,” adds See.
As at 12.31pm, shares in Genting Singapore are down 9 cents at $1.14 or 18.7 times FY19F normalised earnings.
