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Resorts World Sentosa to see a subdued 4Q24 result: Analysts
Neha Soni
January 31, 2025
As Resorts World Sentosa’s (RWS) owner Genting Singapore prepares to release its 4Q24 financial results, analysts believe it is unlikely the operator will mirror the strong VIP performance of its local rival Marina Bay Sands (MBS). According to Nomura analysts, this is mainly attributable to reduced hotel room capacity and seasonality expected to maintain weakness in the segment.
MBS parent Las Vegas Sands released its fourth quarter results, marking a 10 year-on-year and 24 percent quarter-on-quarter increase in VIP rolling chip volume to SG$10.75 billion. This represents a 107 percent of the property’s average 2019 quarterly run-rate.
Analysts from Nomura, including Tushar Mohata and Alpa Aggarwal, in an overnight note, predicted a weaker-than-expected quarter for RWS. There are several factors contributing to this forecast, including reduced hotel room capacity and seasonality. As Singaporeans typically travel outbound during the holiday season, demand for local stays tends to dip.
Moreover, the VIP business at RWS continues to struggle, failing to replicate the strong performance seen at MBS.
“On non-gaming, too, we think revenues will remain flat-to-down year-on-year because of lower hotel room inventory (~1,200 rooms in 4Q24 vs ~1,540 in 4Q23),” they wrote.
“Barring any positive surprise on win rate, we therefore think that 4Q24 may still be weak for Genting Singapore, and the weaker performance may continue until RWS2.0 attractions (Minion Land, the Singapore Oceanarium, the Central Lifestyle Connector and an all-suite hotel in place of the Hard Rock Hotel) start to open progressively from 1H25 and meaningfully contribute to earnings growth in 2H25/2026.”
‘Buy’ rating maintained
Despite this short-term weakness, the analysts remain optimistic about Genting Singapore’s long-term growth prospects. They have maintained a “BUY” rating on the company’s stock, betting that a recovery will occur as new attractions are unveiled in 2025.
Looking ahead, RWS’s recently broke ground with its upcoming 2.0 expansion project. The project is set to add around 700 hotel keys, expanding the resort’s capacity. More importantly, it will transform the area into what Genting describes as a “monumental gateway to RWS and the new Greater Southern Waterfront precinct.”
With this expansion, RWS will also upgrade Universal Studios Singapore and introduce a new immersive themed zone, Illumination’s Minion Land. Meanwhile, the S.E.A. Aquarium will also undergo a major revamp, tripling in size and rebranding as the Singapore Oceanarium. There are plans to transform the main outdoor Forum area as well. Minion Land and the Singapore Oceanarium are expected to soft open in early 2025.
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