Genting Singapore Earnings: Recovery Continues; Improving Flight Capacity Drives Further Uptick

We maintain our fair value estimate of SGD 0.96 per share for Genting Singapore, following the company’s in line second-quarter results, with solid sales recovery across all gaming and nongaming segments, benefiting from the return of regional travel and gaming demand. With tourism traffic and airline capacity continuing to recover—particularly the gradually normalizing travel between China and Singapore—we expect Genting to accelerate its growth in the second half. We maintain our earnings forecasts and expect the company’s adjusted EBITDA to rise 29% year over year to SGD 997 million in 2023. We think the shares are currently fairly valued.