Genting Singapore’s financial results in the January-March 2019 period topped expectations, helped by a higher luck factor, but analysts say they are cautious about near-term prospects.
Net profit declined 5% from the prior year to US$150 million, while revenue dropped the same proportion to US$467 million. EBITDA dropped 8% to US$241 million.
Morgan Stanley said in a note that the net income was higher that it expected, but then continued: “However, the company appeared cautious about future credit extension to Chinese VIP customers amid geopolitical tension, and it sees near-term competition from other ASEAN countries. With limited near-term catalysts (Japanese license winner in mid-2020 at the earliest, 1,100 new hotel rooms in 2024), upside looks limited.”
Meanwhile, Genting Singapore said it is “stepping up its efforts and deploying more resources to be seriously engaged in the anticipated competitive bid process” in Japan. (AGB)