Genting Singapore, operator of Resorts World Sentosa, has reported a 7% year-on-year decrease in its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the second quarter of 2025, amounting to SGD188 million. The decline is attributed to higher staff costs incurred in preparation for the launch of the Oceanarium, despite a robust performance in gaming revenue, a DBS Group Research report said.
The company, which operates in Singapore’s duopoly gaming market, saw its VIP rolling volume grow by an estimated 15% year-on-year, defying initial expectations of a downturn due to regional economic challenges. However, slot revenue fell by approximately 17% year-on-year, contributing to the overall EBITDA shortfall.
Genting Singapore’s interim dividend remains unchanged at 2 Singapore cents, with management indicating a potential resumption of share buybacks, reflecting a more shareholder-friendly approach. The company’s financial outlook has been adjusted, with a 5% reduction in forecasted EBITDA for FY25 and FY26, due to anticipated continued high labour costs and lower room occupancy rates.
Despite these challenges, the DBS Group Research maintains a “HOLD” recommendation with a target price of SGD0.80, based on a blended valuation approach. The potential exclusion from the MSCI Singapore Index poses a risk to share price appreciation. Looking ahead, capital expenditure is expected to increase significantly in 2027 and 2028, with the construction of waterfront hotels slated for completion by 2030.
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