Factors including gambler bad debts and weakness in demand from mainland China players were in likelihood factors in the weak third-quarter performance of Genting Singapore Ltd, said a number of brokerages.

They added it might be only into 2025 before the earnings outlook improves, as new non-gaming facilities come into operation at the company’s Resorts World Sentosa casino complex (pictured) in the city-state.

Genting Singapore had reported on Thursday, third-quarter adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) that were 52.5-percent lower than the prior-year period, at just above SGD163.9 million (US$124.0 million). Adjusted EBITDA declined 18.5 percent sequentially, according to a filing to the Singapore Exchange.

Samuel Yin Shao Yang, an analyst at Maybank Investment Bank Bhd, said in a Friday memo: “Earnings missed our expectations on a combination of lower-than-expected VIP volume and mass-market gross gaming revenue, coupled with higher-than-expected bad debts.”

He further noted: “Chinese account for the majority of VIPs but gambling debts are not enforceable in China.”

Banking group JP Morgan had said in a Thursday memo: “We think a meaningful step down in VIP” during the third quarter, “for both operators, came primarily from China VIPs, reflecting the increased scrutiny on cross-border gambling – e.g., warning from the China embassy in March 2024 – and deteriorating high-end consumer sentiment.”

That was a reference first to Singapore’s casino duopoly, which is completed by Marina Bay Sands, run by a unit of Las Vegas Sands Corp, and second to China’s ongoing campaign against its citizens gambling overseas.

JP Morgan said Genting Singapore’s third-quarter performance was “likely reflecting a share loss in the premium side of businesses – e.g., VIP and high-end premium-mass –, as rival Marina Bay Sands released newer, bigger and better suites in recent months/quarters”.

But the institution added, referring to revamp-work disruption to non-gaming at Resorts World Sentosa: “To be fair, Genting Singapore faced disruptions from ongoing renovation at its retail/food and beverage, also known as The Forum, and hotel rooms – old Hard Rock [Hotel] tower – as well as reduced operating days for SEA Aquarium,” prior to its conversion to ‘Singapore Oceanarium’.

Banking group Nomura noted in its Thursday memo on Genting Singapore’s third quarter: “Barring any positive surprise on win rate, we think that weaker earnings might persist for another two to three quarters.”

Analysts Tushar Mohata and Alpa Aggarwal said that might be the case “until RWS 2.0 attractions – Minion Land, the Singapore Oceanarium, the Central Lifestyle Connector and an all-suite hotel in place of Hard Rock Hotel – start to open progressively from first half 2025, and meaningfully contribute to earnings growth in second-half 2025, [into] 2026.”

The term “RWS 2.0” is a new phase of development for the overall resort, as part of a pledge to the city-state’s authorities.