Singapore casino complex Resorts World Sentosa is likely to see a sequential decline in quarterly earnings before interest, taxation, depreciation, and amortisation (EBITDA) for the second quarter of 2024, says Morgan Stanley Asia Ltd.

The institution expects the property (pictured), promoted by Genting Singapore Ltd, to generate SGD245 million (US$180.9 million) in EBITDA for the three months to June 30.

That would be down circa 35 percent sequentially, and about 80 percent of the pre-pandemic level seen in second-quarter 2019, wrote analysts Praveen Choudhary and Gareth Leung.

“This is weaker than first-quarter 2024 due to seasonality, lower visitation quarter-on-quarter and 23-percent fewer rooms quarter-on-quarter in operation,” added the analysts.

Genting Singapore reported first-quarter adjusted EBITDA of SGD369.5 million, an improvement of 92.7 percent year-on-year, and up 62.2 percent on the fourth quarter.

Investment analysts had mentioned that “extremely high” hold in the VIP gambling segment helped the company’s business performance in the first three months of 2024.

The institution had flagged previously that Resorts World Sentosa’s gaming volume for 2024 “could be limited by 400 fewer hotel rooms after Hard Rock closure”.

That was a reference to the March 2 shuttering of that hotel brand, as Genting Singapore proceeds with a SGD6.80-billion investment to upgrade the complex.

“We are 5 percent below consensus for 2024 estimate EBITDA” for Genting Singapore, at SGD1.1 billion, observed Morgan Stanley in its recent memo.

The note also made reference to an oil spill, after a shipping accident on June 14, that has polluted Singapore’s southern coastline, including Sentosa, where Genting Singapore’s property in located.

Swimming and other sea activities are prohibited for now in Sentosa, while several beaches across the city-state are closed until further notice.