• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Currency headwinds hurt Genting Singapore: analyst

Sep 09, 2015 Newsdesk Latest News, Singapore, Top of the deck  


Currency headwinds hurt Genting Singapore: analyst

Union Gaming Securities Asia Ltd says the third quarter results of Genting Singapore Plc – the operator of casino property Resorts World Sentosa (pictured) in Singapore – are likely to be negatively impacted by “continued currency headwinds for two core customer geographies, Indonesia and Malaysia”.

“Over the first two months of the third quarter of 2015, the Malaysian ringgit and Indonesian rupiah have depreciated by more than 10 percent and 4 percent, respectively, on a year-on-year basis relative to the Singapore dollar,” noted analyst Grant Govertsen.

He added: “These currency headwinds will negatively impact both VIP and mass market trends in the quarter, which will only be partially offset by a nearly 10 percent appreciation in the value of the Chinese renminbi relative to the Singapore dollar over the same time period, although the Chinese renminbi strength will largely be applicable to only the VIP segment.”

Better to reflect those trends, Union Gaming lowered its estimates for Genting Singapore. The firm cut by 3 percent its previous forecasts for the casino operator’s EBITDA (earnings before interest, taxation, depreciation and amortisation) for the third and fourth quarters of 2015, to respectively SGD272 million (US$192 million) and SGD266 million.

Union Gaming now expects Genting Singapore’s EBITDA for full 2016 to be SGD1,211 million, a 2-percent downward revision from the firm’s previous forecast.

“We believe Resorts World Sentosa has been focusing increased efforts on attracting more mass-market Malaysian customers (premium and non-premium), which included the recent opening of a new hotel in Jurong Town on the main road between the border with Malaysia and Resorts World Sentosa,” noted Mr Govertsen.

“However, given the sharp recent decline in value of the Malaysian ringgit, we believe this will have a negative near-term impact on Malaysian visitation and resulting gross gaming revenue (and non-gaming revenue) at Resorts World Sentosa,” he added.

Fitch Ratings Singapore Pte Ltd earlier this month stated that the outlook for the casino gaming industry in Singapore continued to be “stable”. The ratings house cited “robust” EBITDA margins “in excess of 30 percent” at the two Singapore resorts – Resorts World Sentosa and rival Marina Bay Sands, developed by Las Vegas Sands Corp.

Genting Singapore swung into the red in the second quarter of 2015, with losses of SGD16.9 million, from a profit of SGD102.3 million in the prior-year period. Revenue fell 23 percent year-on-year to SGD578.1 million.


  • tweet
Related articles
  • Several RWS non-gaming sites at capacity: Genting
    Several RWS non-gaming sites at...

    Dec 28, 2020  

  • IGT US$1bln sale in Italy aids valuation: Union Gaming
    IGT US$1bln sale in Italy aids...

    Dec 09, 2020  

More news
  • CNY 2021 unlikely to boost Macau casinos, say observers
    CNY 2021 unlikely to boost Macau...

    Jan 15, 2021  

  • Mass market play record 65pct Macau GGR in 4Q: govt
    Mass market play record 65pct Macau GGR...

    Jan 15, 2021  


Latest News

CNY 2021 unlikely to boost Macau casinos, say observers

CNY 2021 unlikely to boost Macau casinos, say observers

Jan 15, 2021  

Recent advisory notices issued by a number of local authorities in mainland China, calling on residents not to travel during the February Chinese New Year (CNY) break, further clouds the prospects...
Read More
Mass market play record 65pct Macau GGR in 4Q: govt

Mass market play record 65pct Macau GGR in 4Q: govt

Jan 15, 2021  

Malaysia Covid outlook negative to Genting Bhd: Moody’s

Malaysia Covid outlook negative to Genting Bhd: Moody’s

Jan 15, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

“We expect Las Vegas Sands to not have any material change in strategy. The focus remains developing Macau and Singapore”

Vitaly Umansky, Kelsey Zhu and Tianjiao Yu

Analysts at brokerage Sanford C. Bernstein



Most Popular

  • Sheldon Adelson, self-declared casino industry iconoclastSheldon Adelson, self-declared casino industry iconoclast January 13, 2021
  • Casino entrepreneur Sheldon Adelson dies aged 87Casino entrepreneur Sheldon Adelson dies aged 87 January 12, 2021
  • Guangdong govt advises public to stay in province for CNYGuangdong govt advises public to stay in province for CNY January 11, 2021
  • Quality fake chips sold online found at Macau casinoQuality fake chips sold online found at Macau casino January 13, 2021
  • Revamped Nüwa hotel reopens Feb 8, says City of DreamsRevamped Nüwa hotel reopens Feb 8, says City of Dreams January 12, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us