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According to Moody’s Investors Service, Genting Singapore Ltd continues to enjoy the advantage of a solid balance sheet. However, it cautioned that decreasing market share in Singapore and poor credit metrics of its parent firm, Genting Bhd, have started impacting the credit quality of the gaming company. The company operates the casino facility of Resorts World Sentosa in Singapore.
The ratings agency has rated Genting Singapore at Baa1 with a stable outlook. The recent comments were made in the wake of the gaming company reporting its first quarter net profit at SGD65.2 million, or US$51.2 million, which was 55.0% lower than the same quarter last year on revenue of SGD607.6 million, down 3.0%.
Earnings And Balance Sheet
Genting’s first quarter adjusted EBITDA stood at SGD179.0 million, 24.1% lower than the corresponding quarter last year. According to Moody’s, the company’s credit metric continues to be driven by its robust balance sheet and a net cash position, which provides it with substantial financial flexibility.
The agency said that strength is being increasingly constrained by the company’s loss of market share over the past few years in Singapore. Moody’s analysts Anthony Prayugo, Jonathan Tai, and Jacintha Poh said Genting Singapore’s share of gross gaming revenue declined to around 24% in the first quarter of 2026 from 39% in the first quarter of 2024.
That drop limits earnings growth, according to the analysts. The comments suggest that while the company still has room to absorb pressure, its earnings base has become harder to expand in a market where competition remains tight.
Investment And Margin Pressure
Moody’s also said earlier expectations for a gradual improvement in margins may no longer hold. The analysts had earlier believed that the launch of new attractions and increased operating capacity in the latter part of 2025 could make the margins approach 2023 levels.
However, continued expenditure on marketing for such attractions and system enhancements could result in margins remaining largely flat in the short run. Moody’s said the investments in Resorts World Sentosa are strategically necessary to improve visitation and competitiveness, but will weigh on profitability in the short term.
The rating agency also pointed to broader pressures linked to the parent company. Genting Bhd’s weaker credit quality was cited as another risk for Genting Singapore, adding to the strain created by declining market share and continued investment needs.
Competition And Operating Costs
Earlier this month, Nomura downgraded Genting Singapore’s rating, citing the slow ramp-up in business after upgrades to Resorts World Sentosa. The latest comments from Moody’s came as the company continues to focus on its gaming venue as the next phase of investment at the complex.
Executive chairman and acting chief executive Lim Kok Thay said at the company’s annual general meeting in mid-April that management is concentrating on design, marketing, and operations to close the competitive gap in the gaming segment with Marina Bay Sands, the Singapore rival operated by a unit of Las Vegas Sands Corp.
Moody’s also said ongoing geopolitical uncertainties, particularly related to the Middle East conflict, could lead to higher utilities costs at Resorts World Sentosa. That concern was echoed by the casino firm in its first-quarter earnings.
At the same time, the agency noted that a substantial portion of Genting Singapore’s utilities expenses are price fixed, which should help soften the impact of higher energy prices on operating costs. The mix of fixed and variable costs may provide some protection, even if pressure on margins remains.
Outlook Remains Softer
Moody’s now expects Genting Singapore’s EBITDA to stay below 2023 and 2024 levels over the next few years. Based on its estimates, adjusted EBITDA is likely to remain in the SGD800 million to SGD900 million range in 2026 to 2028, below the SGD1.1 billion to SGD1.2 billion achieved in 2023 to 2024.
The latest assessment shows that while Genting Singapore still has a solid financial base, the company’s earnings trajectory is being shaped by weaker market share, continued spending, and a more difficult operating backdrop.
Source: GGR Asia
