Genting Singapore Prepared for Hard Road Ahead which Q1 Figures IndicatePublished May 12, 2021 by Lee R
The lack of mobility among international travelers has private interests in Singapore on edge.
The momentum of the Singapore market rebound appears to have slowed.
Q4 Shortfalls Again
This assessment comes on the heels of main proprietor Genting Singapore's indication of a slight 2 percent increase in casino sales from Q1 of 2020 that no longer reflects growth that driven by pent up demand turned in in Q4 2020.
Sign of the Times
Other marks all indicate sequential and year-on-year drops as down from periods in which there was a high level of interference and thus shortfalls in pace due to the pandemic.
Gaming Revenue Down
At $216.9 million, gaming revenue was down 19 percent year-on-year while rising only marginally from Q4 2020's robust $213.5 million.
Total Revenue Down
Meanwhile, total revenue was down 32 percent year-over-year ($277.9 million) and down 12 percent sequentially from Q4.
Further metrics indicating rather severe under-performance include adjusted EBITDA at $128.1 million, for a 15 percent year-on-year drop from Q1 2020 in which only a month of operations were normal operational performance before the pandemic hit. Adjusted EBITDA was further down 39 percent sequentially from Q4.
Net Profit Stifled
Net profit for Genting Singapore was shackled, with a $34.5 million for Q1 down 26 percent year-on-year and 74 percent sequentially.
The pent-up demand originally came primarily from cash-rich Singapore's ballyhooed IR projects, which received strong local support to complement the foreign investment.
The Elephant in the Room
Still, Genting experts remained aware that a legitimate market rebound remained unlikely without one key logistical acquiescence: the opening of borders and resumption of international travel.
The Hong Kong Factor
Hong Kong and Singapore have been working to establish a quarantine-free travel bubble with the latest pushed back start date being later this month—if no more spikes in cases prevail in Hong Kong.
Despite sold out flights between Singapore and a key commerce partners in Hong Kong, Genting management acknowledges the current logistical barrier as a hurdle which still needs to be addressed which curtails near-term expectations.
With Genting acknowledging that “international visitor arrivals to Singapore, especially for leisure purposes will be unlikely to return in the near term,” there is more work to do to adapt conditions while global vaccine distribution so that Singapore can be prepared for the real rebound when international travel does resume.