Headwinds still strong for Genting Singapore

Genting Singapore, whose 2015 profit plunged by 70 percent to S$193.1 million ($138 million), is expected to suffer more pain ahead as it struggles to reposition the brand and recover from prior lending policies.   Singapore’s two casinos have both been at pains to find catalysts for growth, with the highly regulated market offering little room for further expansion. However, Resorts World Sentosa appears to be slipping further behind its rival Marina Bay Sands.  In December, Fitch Ratings analysts stated that the market share for Marina Bay Sands is now at about 62 percent with Genting’s Resorts World Sentosa slipping back to 38 percent. For Q4, net profit was just S$22 million, compared with S$118.0 in the comparable period. While some analysts are still recommending a buy or hold/neutral on the shares, others, such as Deutsche Bank, have recently reiterated a sell and “see more pain ahead.” We looked into the issues behind...

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