Bernstein Research says Genting Singapore’s business mix is generating strong cash flow driven by mass and non-gaming and is more diverse than that of the Macau operators.
“With its large and diversified product offerings (VIP, Mass, hotels, F&B, retail, MICE, Universal Studios theme park and the Marine Life Park), the company’s business mix is more diverse than that of the Macau operators,” said analyst Vitaly Umansky.
“We forecast EBITDA to grow at a 9.4% 2015E-2018E CAGR.”
Bernstein forecasts 55 percent or more of Genting’s gross gaming revenue will come from higher margin mass.
“Over 23 percent of Genting’s net revenues derives from non-gaming, nearly double that of Venetian Macau, which has the largest non-gaming component in Macau.”
“The company is showing an impetus to return capital to shareholders via stock repurchases and continuing of dividends.”
Genting currently has a share repurchase plan of up to 1.22 billion shares.