- An interim dividend of 1 Singapore cent per share was declared
- 2Q22 adjusted EBITDA fell 2.8% YoY on lower hold rate
- Ramping up hiring to prepare for the recovery ahead
Genting Singapore’s (GENS) 2Q22 revenue rose 25.9% year-on-year (YoY) to SGD348.6m, driven by higher contributions from both gaming and non-gaming segments. However, adjusted EBITDA and net profit fell 2.8% and 17.9% YoY to SGD143.9m and SGD44.1m respectively, due to lower VIP hold rate, higher operating costs and increased casino tax rates. An interim dividend of 1 Singapore cent was declared in 1H22. Looking ahead, we expect a sequential recovery for GENS, backed by substantial lifting of pandemic related restrictions, increased operating capacities, strong pent-up demand and the return of Meetings, Incentives, Conference and Exhibitions (MICE) industries, barring unforeseen circumstances. We revise our estimates on hold rate and operating expenses. After adjustments, our fair value estimate remains at SGD0.92.