Genting’s prospects boosted by strong Marina Bay Sands results

Investors are betting that RWS will have similarly strong earnings.

Analysts are hopeful that Marina Bay Sands’ strong set of results will have a positive read-through for its competitor Resorts World Sentosa.

MBS’ earnings jumped 66% year-on-year to $579.1m (US$478.4m) in the fourth quarter, backed by a favourable VIP hold rate of 3.58%.

According to CIMB, this data is a positive indication of better gross gaming revenue figures at RWS in Q4, especially in the VIP segment which is likely to have bottomed in Q3.

"We expect a similar pickup of rolling chip volumes at RWS in 4Q14, if MBS data is an indication that volumes are likely to have bottomed out in 3Q14. Similar to MBS, we are expecting a more favourable VIP hold rate at RWS in 4Q14, which should allow RWS to retain its 55-60% market share of VIP GGR. In the mass segment, we believe the stronger gaming visitation from Indonesia and Malaysia will also benefit RWS and allow it to retain its 43-45% market share of mass GGR. Overall, we expect RWS to maintain its total GGR market share of c.50%,” stated CIMB.