Resorts World has again lost market share to Marina Bay Sands

Genting Singapore' gambling business reports lower mass market gross gaming revenue and VIP volume in 4Q2011.

“While the six-week school holidays and new Transformers ride that opened on 2 December 2011 increased daily average visits to Universal Studios Singapore from 9,400 in 3Q11 to 10,250 in 4Q11, we estimate that RWS’s 4Q11 mass market GGR counter-intuitively eased 5% QoQ,” KimEng analyst Shin Yao Teng

RWS’s 4Q11 VIP volume also contracted 26% QoQ. KimEng however notes that it still managed to maintain profitability.

"its VIP win rate of 3.9% (3Q11: 3.17%) and lower provisioning of $20.7m (3Q11: SGD56.9m) led 4Q11 EBITDA margin 2ppts higher QoQ to 51%.While the low 4Q11 VIP volume may spook investors, we caution that VIP win rate and VIP volume are inversely related," said Shin.

Going forward, KimEng is optimistic on 1Q12 post the opening of the Equarius Hotel & Beach Villas that will nearly triple RWS’s VIP room inventory.