China’s toughening of cross-border gambling laws caused a significant crash in VIP play sending Genting Singapore’s revenues and profitability plummeting in the three months to 30 June 2024.
As a result revenues at Resorts World Sentosa in Singapore dropped by 29 per cent quarter-on-quarter to to US$483m with a steep 53 per cent fall in VIP GGR to US$175m. Mass gaming and and slot play remained steady with GGR of US$308m.
JP Morgan analysts said: “VIP was very bad with its rolling volumes dropping 26 per cent quarter-on-quarter to the lowest level since full re-opening. We can’t say this was too surprising as Marina Bay Sands already showed the same momentum in 2Q, but it’s still disappointing. We think meaningful step-down in VIP for both operators came from China VIPs, reflecting the increased scrutiny on cross-border gambling and deteriorating high-end consumer sentiments. We don’t see the trend inflecting in the foreseeable future and cut VIP estimates for 2H24 to err on the side of caution.”
For the year so far though, Genting Singapore’s revenues increased by 25 per cent to US$1.03bn.
Genting said: “While we expect that the number of visitor arrivals to Singapore will grow, a full recovery to pre-pandemic levels could face headwinds due to recovery of regional travel destinations and rising geopolitical tensions. During the second quarter of 2024, we maintained steady visitor numbers through concerts and special programming at our attractions. S.E.A. Aquarium also engaged in outreach initiatives with respected marine institutions to broaden its audience and strengthen its reputation, laying the foundation for its expansion into the Singapore Oceanarium. This includes the 5th International Horseshoe Crab Workshop 2024 jointly hosted in collaboration with International Union for Conservation of Nature (IUCN) and Nature Society Singapore. S.E.A. Aquarium has entered into a memorandum of understanding with Nanyang Technological University’s Earth Observatory of Singapore, in April 2024, to jointly undertake research projects.”
“To further deepen Resorts World Sentosa’s (RWS) appeal as a premium lifestyle destination, we will continue to refresh and rejuvenate existing offerings. In the second half of 2024, RWS will roll out four global blockbuster intellectual property partnerships. This includes Mega Minions from Illumination’s Despicable Me 4 at Universal Studios Singapore, Genshin Impact at S.E.A. Aquarium and Netflix’s global hit Sweet Home at the upcoming Universal Studios Singapore Halloween Horror Nights. In October 2024, Harry Potter: Visions of Magic will make its Asian debut at RWS with exclusive immersive environments. These differentiated programmes and events are anticipated to boost both visitorship and spending at RWS.
“The first phase of RWS 2.0 comprising Illumination’s Minion Land and the Singapore Oceanarium, along with the ongoing development of our Central Lifestyle Connector and an all-suite hotel in place of Hard Rock Hotel, remain on track for soft opening in early 2025. Together, these transformational projects will elevate RWS entirely with a greater variety of visitor offerings and experiences. In addition, the Waterfront development which includes two new luxury hotels, is expected to begin construction in the fourth quarter this year,” it added.
