\n<\/p>\n
Both casino operators are forking out billions on upgrades, raising the stakes for Resorts World Sentosa<\/p>\n
[SINGAPORE] Genting Singapore\u2019s latest quarterly earnings in August surprised on the upside.<\/a> But when compared with the other casino operator in the city-state, Marina Bay Sands (MBS), it continues to hold a smaller \u2013 and possibly shrinking \u2013 slice of the gaming pie.<\/p>\n Can Genting Singapore escape MBS\u2019 shadow<\/a> as both make big bets on multi-billion dollar upgrades?<\/p>\n Comparing Singapore\u2019s two integrated resort (IR) players, DBS research analyst Chee Zheng Feng pointed out that Genting Singapore arguably delivered the stronger second quarter<\/a> showing relative to expectations.\u00a0<\/p>\n Genting Singapore\u2019s Q2 adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) rose 18 per cent quarter on quarter to S$210.8 million, and is up 12 per cent year on year. Chee called the results a \u201cpositive surprise\u201d, noting that Q1 is typically a stronger quarter.\u00a0\u00a0<\/p>\n After the weak Q1 performance, DBS had expected Q2 to be no better particularly given the World Cup impact, where patrons diverted part of their wagering budgets towards sports betting instead.<\/p>\n Management has since disclosed that internal structural issues weighed on Q1 operations but have largely been resolved, Chee said.<\/p>\n Still, while not a like-for-like comparison, the profits are still a far cry from MBS\u2019 adjusted Ebitda of US$689 million in Q2.<\/p>\n MBS\u2019 profits were down 10.3 per cent from the year-ago period,<\/a> which parent company Las Vegas Sands (LVS) attributed to the Fifa World Cup that began in June. This came as LVS itself missed profit and revenue estimates for the quarter.<\/p>\n In Genting Singapore\u2019s case, Ben Lee, managing partner of Macau-based consulting firm IGamiX, pointed out that the improvement may also reflect generous player incentives. These include complimentary benefits and other incentives offered to players, out of every dollar won from them.<\/p>\n \u201cThey are probably looking to buy more business,\u201d he said. \u201cThat is a very typical approach for any casino in a competitive environment.\u201d<\/p>\n It is harder to tell how much business the casinos are attracting by extending credit to players, Lee said. This has always been a strategy for the casinos, he added, recalling that in their first year of competition, Resorts World Sentosa (RWS) and MBS battled through credit, resulting in bad debts about two years later.<\/p>\n Macau is now in the middle of a \u201chuge credit battle between all six casino operators\u201d,<\/a> Lee said, adding: \u201cI would not be surprised at all if the credit war in Macau that started early last year has now spread to Singapore.\u201d<\/p>\n \u201cFrom an absolute performance perspective, MBS continues to be the stronger operator,\u201d Chee said. \u201cDespite the softer quarter, MBS maintains a clear lead in market share, profitability and premium customer penetration, and continues to gain share from RWS over the longer term.\u201d<\/p>\n Market share is a key metric for industry watchers, who say MBS has gained distance on Genting Singapore, owing to its city-centre location and \u201chigh quality\u201d positioning.<\/p>\n Lee noted the \u201cdozens of mixed quality hotels around the Marina Bay area\u201d, compared with the more limited selection at RWS.<\/p>\n \u201c(RWS has not) got a catchment market that they can draw on that MBS has,\u201d he added.\u00a0<\/p>\n Lee said service and quality also set the IRs apart. MBS occupies a \u201cmuch higher position\u201d, while RWS is seen more as a family holiday destination than a gaming destination.<\/p>\n Tourists\u2019 experiences have reinforced those reputations over the years.\u00a0<\/p>\n Since 2023, RWS has generally held a VIP volume share of between 40 and 50 per cent, with a few exceptions, according to DBS estimates.<\/p>\n But by the same measures, this fell to 29.7 per cent in Q4 2025, and continued to decline to just 19.6 per cent in Q1 2026 \u2013 though it recovered to 36.4 per cent in the most recent quarter.<\/p>\n George Choi, head of global gaming research and regional conglomerates at Citi Research, said that the market had settled into a \u201cgolden split\u201d, with MBS holding about two-thirds and Genting Singapore, one-third. The gap has been widening, and he does not expect a return to that split soon.<\/p>\n MBS had also renovated its property, including converting rooms into suites, helping it command average room rates of around US$1,000 per night.<\/p>\n \u201cWith that property, you\u2019re able to appeal to the whale players out there,\u201d he said, using the industry lingo for high wagering players.<\/p>\n On the other hand, upgrading works at RWS began over two years later than MBS, with non-game amenities only gradually reintroduced from H2 2025, he said. Its new chief operating officer also took over only in December last year.<\/p>\n RWS will need more time to catch up, Choi said.<\/p>\n Even so, DBS\u2019 Chee believes the latest results suggest that the pace of RWS\u2019 market share loss may be moderating. For one thing, the stronger-than-expected quarterly performance indicates that some of the operational issues seen earlier in the year were temporary.<\/p>\n The analyst expects MBS to retain 60 to 65 per cent of Singapore\u2019s gaming, but sees little risk of RWS\u2019 share falling below 30 per cent again. The bank estimated its share at 26.5 per cent and 24.6 per cent in Q4 2025 and Q1 2026, respectively.\u00a0<\/p>\n Lee is less optimistic. Given gaming\u2019s volatility, he called for a longer-term view over quarterly metrics.<\/p>\n By his measure, the market share was split 51 per cent to 48 per cent in favour of MBS, back when the IRs first opened in about 2011. This has shifted to a split of 81 per cent to MBS and 19 per cent to RWS in 2025, he said.<\/p>\n \u201cThis long-term picture shows that there\u2019s very clearly a divergence in terms of fate and fortune, with MBS clearly dominating the landscape against RWS.\u201d<\/p>\n Both IRs have announced significant capex expansion.\u00a0<\/p>\n MBS\u2019 new tower IR2 is being built to the tune of US$8 billion,<\/a> slated for completion in 2030. It will comprise an all-suite ultra luxury hotel with a rooftop experience, food and beverage and retail options, Mice (meetings, incentives, conferences and exhibitions) space and a live entertainment arena.<\/p>\n Choi thinks that the 15,000 seat arena will give MBS the control to bring in crowd-pullers during the slow season, or to further boost gross gaming revenue in a stronger period.<\/p>\n Meanwhile, under its S$6.8 billion RWS 2.0 project, Genting Singapore announced plans for a waterfront development, also to be completed in 2030.<\/a> It will feature two new luxury hotels, a four-storey retail and dining podium, a mountain trail, and a waterfront promenade.<\/p>\n It will also benefit from the Greater Sentosa Master Plan,<\/a> under which a transport hub is being built to improve the island\u2019s accessibility from the mainland.<\/p>\n \u201cIf that works out, then we might have a ball game between the two IRs.\u201d<\/p>\n Casinos are largely similar, so what would make one IR better than the other is their non-gaming amenities, Choi said, adding that it is too early to make the call on whether the gap between the two players will narrow.<\/p>\n Chee believes that while MBS will remain the dominant player, RWS 2.0 should help narrow the gap by refreshing its offerings and \u201creinforcing its appeal as a more exclusive, resort-style destination on Sentosa\u201d.<\/p>\n Lee expects MBS to reinforce its premium position and is doubtful that RWS\u2019 family focused upgrades will draw more gaming tourists. \u201cHow many do you think will be attracted by the mountain trail?\u201d<\/p>\n He questioned RWS\u2019 decision to stick with its original strategy despite losing market share to MBS over the last 15 years.<\/p>\n Either way, Chee expects the upgrades to be a boon for the overall gaming market in Singapore, with both players benefiting from market expansion rather than competing solely for existing demand.<\/p>\n They will drive higher gaming volume, particularly among premium mass and VIP customers who are willing to pay for newer and higher-quality facilities, he said. \u201cIn terms of competitive positioning, we do not see a clear winner.\u201d<\/p>\n<\/div>\n Both casino operators are forking out billions on upgrades, raising the stakes for Resorts World Sentosa [SINGAPORE] Genting Singapore\u2019s latest quarterly earnings in August surprised…<\/p>\n","protected":false},"author":1,"featured_media":88444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[2611],"tags":[],"class_list":["post-88443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-headlines","wpcat-2611-id"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/88443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=88443"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/88443\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/88444"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=88443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=88443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=88443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Widening gap<\/h2>\n
Post revamp: Genting or still MBS?\u00a0<\/h2>\n
\n
\n
Read Full Article At Source <\/a>
\n