Genting Singapore Rumored to Be Considering Bid for Thai Integrated Resort License

Genting Singapore, the owner of Resorts World Sentosa, is considering bidding for an integrated resort and casino license in Thailand, according to Maybank. Analyst Samuel Yin Shao Yang suggested that the company may form a joint venture to pursue the license, similar to its past ventures in Japan and Korea.

Yin noted that while Thai integrated resorts are more likely to threaten Genting Singapore than Genting Malaysia, the company has a history of expanding overseas to combat competition. He cited previous attempts to expand into South Korea and Japan as evidence of this willingness to pursue opportunities abroad.

The analyst also projected that Genting Singapore’s income is expected to return to pre-COVID levels this year, fueled largely by growth in gaming revenue from Chinese tourists. He noted that even before the third quarter of 2023, the mass market was performing at pre-COVID levels, driven by new migrants and increased wealth from rising property prices. The return of Chinese tourists in the third quarter of 2023 further boosted gaming revenue, with VIP volume reaching its highest level since the second quarter of 2015.

The growth is expected to continue, especially with the recovery of air travel capacity between China and Singapore. Additionally, Singapore’s recent approval of a 30-day visa-free entry for Chinese visitors is expected to further drive growth in the long term.

Maybank estimates that Genting Singapore’s income will reach SG$2.66 billion (approximately US$2.0 billion) by 2024, with Adjusted EBITDA rising to SG$1.25 billion (approximately US$941 million).

Overall, the outlook for Genting Singapore appears positive, with potential expansion into Thailand and the expected recovery of income to pre-COVID levels, driven by growth in Chinese tourism and strategic investments in joint ventures for casino licenses.