Prospects for a return to international tourism for Singapore have dimmed in 2021 due to new Covid outbreaks, triggering a cut in earnings forecasts for Genting Singapore by Nomura Research.
The firm it cutting its estimates for adjusted EBITDA for 2021 and 2022 by 15 percent and for net profit by 26 percent and 22 percent respectively
“While earnings in the near-term are unlikely to surprise on the upside, we reiterate our positive stance on GENS to play an eventual investor rotation into tourism / reflation names,” the firm said. “We believe GENS will be one of the better tourism recovery stories due to its balance sheet strength and the relatively better control of COVID-19 in Singapore, along with fast pace of vaccination.”
Casino cruise operator Genting Hong Kong said it is assessing whether the group will have sufficient financial resources to continue operating, and that it was concerned with the continued uncertainties brought on by the covid-19 pandemic.
For this edition of our magazine, we focus on Southeast Asia, with a particular look at the Philippines. The country’s casino industry has been among the hardest hit in Asia, with the integrated resorts in Manila’s Entertainment City having remained mostly closed to the general public since the beginning of the crisis last year.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.