Struggling Performance of Genting Singapore persists in Q1 of 2025, attributed to delays in hotel room renovations and unfavorable macroeconomic conditions.
Singapore's Casino Scene: Genting's Q1 2025 Slump By: Ben Blaschke, Inside Asian Gaming
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Genting Singapore, the force behind Resorts World Sentosa (RWS), revealed a staggering 20% year-on-year revenue drop to SG$626.2 million (US$481 million) in Q1 2025. Although this figure shows a 2% increase from Q4 2024 due to seasonality, it ultimately fell short of expectations.
The main reasons behind this dip in earnings? A lower hotel inventory as a result of upgrades to their offering, coupled with a less-than-ideal macroeconomic climate. Gaming revenue plummeted by 24% year-on-year, but managed a 5% bump from the previous quarter to SG$437.5 million (US$336 million). Non-gaming revenue also took a hit, decreasing by 10% year-on-year and 4% sequentially, amounting to SG$188.5 million (US$145 million).
Adjusted EBITDA, meanwhile, dipped by 36% year-on-year but posted a 5% increase since Q4 2024, reaching SG$235.8 million (US$181 million). Net income fell 41% year-on-year yet rose 2% since Q4 2024, standing at SG$145.0 million (US$111 million).
While these figures might paint a gloomy picture, there's more to the story. Factors contributing to Genting Singapore'sdropping revenue include:
- Lower VIP rolling win rate: Weak win rates in the gaming sector have proved detrimental to earnings[4].
- Temporary closure of Hard Rock Hotel: The hotel's closure for renovation and rebranding diminished available room inventory, negatively impacting hotel revenues[4].
- RWS 2.0 project disruptions: The ongoing Resorts World Sentosa 2.0 development project has resulted in operational disruptions that have weighed on performance, particularly in Q2 but also Q1[4].
- High base effect: A strong performance in the previous year has made the current quarter's results appear comparatively weaker[4].
- Shutdowns of key attractions: The closure of crucial attractions like hotels and aquariums has contributed to weaker earnings in H1 2025, with the Singapore Oceanarium set to reopen only in Q3 2025[3].
All told, these factors have led to a significant year-on-year revenue decline of 20% to SG$626.2 million and a steep 41% decrease in net profit to SG$145 million in Q1 2025, compared to the same period last year[2][4]. The interplay of lower gaming win rates, hospitality disruptions resulting from renovations, and facility closures has significantly impacted Genting Singapore's earnings during this quarter.
The struggles in Genting Singapore's Q1 2025 revenue can be attributed to factors such as lower VIP rolling win rates, temporary closure of the Hard Rock Hotel, disruptions caused by the RWS 2.0 project, a high base effect, and shutdowns of key attractions like hotels and aquariums. These elements, particularly within the casino-and-gambling sector and casino-culture, have significantly affected the business and finance performance of Genting Singapore, leading to a 20% year-on-year revenue drop in Q1 2025 and a steep 41% decrease in net profit to SG$145 million.
