Net revenues at the company’s Singapore IR, Resorts World Sentosa, fell by 27% quarter-on-quarter to SG$571 million (US$434 million) while GGR dropped 29% to SG$636 million (US$483 million). This included a 53% decline in VIP GGR to SG$230 million (US$175 million) compared with flat mass and slot GGR of SG$405 million (US$308 million).

Adjusted EBITDA fell by 46% to SG$201 million (US$153 million) to miss consensus by some way.

In a note, JP Morgan analysts noted that the sharp decline reflected a very high 1Q24 base and huge swing in VIP luck, down from 4.6% a year earlier to 2.9% – below theoretical of 3.3% – although volumes were also well down.

“VIP was very bad with its rolling volumes dropping 26% quarter-on-quarter to the lowest level since full re-opening,” the investment bank wrote. “We can’t say this was too surprising as [local rival] Marina Bay Samds already showed the same momentum in 2Q, but [it was] still disappointing.

“We think meaningful step-down in VIP for both operators came from China VIPs, reflecting the increased scrutiny on cross-border gambling and deteriorating high-end consumer sentiments. We don’t see the trend inflecting in the foreseeable future and cut VIP estimates for 2H24 to err on the side of caution.”

Despite the Q2 struggles, Genting Singapore still saw group-wide revenues for the first half of the year jump 25% versus 1H23 to SG$1.36 billion (US$1.03 billion), while Adjusted EBITDA rose by 26% to SG$570.8 million (US$433 million).

It also outlined steady progress in its RWS2.0 expansion plan, noting the first phase, comprising Illumination’s Minion Land and the Singapore Oceanarium, along with the ongoing development of Central Lifestyle Connector and an all-suite hotel in place of Hard Rock Hotel, remains on track for soft opening in early 2025.

“Together, these transformational projects will elevate RWS entirely with a greater variety of visitor offerings and experiences,” it said. “In addition, the Waterfront development which includes two new luxury hotels, is expected to begin construction in the fourth quarter this year.”