Genting Singapore Earnings: Growth Story Intact, Despite a Seasonally Weak Quarter

Narrow-moat Genting Singapore posted a sharp 27% sequential decline in second-quarter revenue and 46% fall in adjusted EBITDA. The weakening trend is in line with peer Marina Bay Sands given seasonally soft visitor traffic, while a lower win rate and closure of the Hard Rock Hotel Singapore for renovations have further dampened results. This is within our expectations and we think the temporary setback won't affect the firm’s long-term growth story. We continue to believe Genting’s strong focus on premium lifestyle offerings and ongoing development of the “RWS 2.0” project will further strengthen its competitiveness in regional markets and drive robust sales and profit growth in mid- to long term.