Genting Singapore posted a first-quarter net profit after tax of SG$145.0 million ($111.7 million), representing a 41.4 percent decline from the same period last year, though Maybank analysts maintain their optimistic outlook for the casino operator.
In a recent investment memo, Maybank reiterated its “BUY” recommendation with a target price of SG$1.01 ($0.78), highlighting that VIP volume and mass market segments showed meaningful quarter-on-quarter recovery despite the year-on-year decline.
The Singapore-based casino operator reported aggregate revenue of SG$626.2 million ($482.2 million) for the first three months of 2025, down 20.2 percent year-on-year but showing a slight 2.3 percent sequential increase from the previous quarter.
Gaming revenue for the first quarter stood at SG$437.5 million ($336.9 million), representing a 24.0 percent decrease from a year earlier, while non-gaming revenue declined 9.5 percent year-on-year to SG$188.5 million ($145.1 million). The company’s first-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 37.3 percent year-on-year to SG$230.5 million ($177.5 million) but improved 2.8 percent sequentially.
According to Maybank’s analysis, VIP volume recovered 26 percent quarter-on-quarter to SG$8.7 billion ($6.7 billion) as Resorts World Sentosa regained 5 percentage points of VIP volume share to 44 percent. Additionally, first-quarter mass market gross gaming revenue reached a post-COVID high of SG$414 million ($318.8 million).
Maybank expects operations to be ‘seasonally slower’ in the second quarter following the Chinese New Year period but anticipates stronger performance from the third quarter of 2025. This projected improvement is largely attributed to the opening of The Laurus hotel, which will provide 183 suites aimed at accommodating more VIP and premium mass players.
The investment firm also noted that the ‘short-lived trade war between the United States and China’ did not appear to have a significant impact on VIP volumes in the second quarter of 2025.
Maybank maintains its earnings estimates and notes that at Genting Singapore’s last price, the market is discounting the company’s substantial net cash reserves.
