Looks like Las Vegas Sands isn’t the only one sweating out weaker-than-expected financial returns over in Singapore. Genting Singapore is feeling the same heat after its shares fell by as much as 2.3%, it’s lowest total in two years.
According to Reuters, Genting’s shares dropped by 1.6% to S$1.26 with 30.2 million shares changing hands as of 0222 GMT. That number is down from the company’s full-day average of 35.2 million shares in the past five sessions.
Likewise, the Marina Bay Sands also saw its revenue fall by 5.8%, a drop that industry experts blame on the surprising success its casino VIP customers have had recently, which has put a 7.5% dent on the company’s revenue pie.
The lower-than-expected numbers of both casinos have given its operators enough reason to be concerned, especially Genting Singapore, which hasn’t had the shiniest year it could have hoped for. A few months ago, the company posted a 33% drop in their first quarter net profit S$205.5 million. At that time, shares of the resort were also down by 3% at $1.620.
Exacerbating the matter are recent reports suggesting that Singapore is planning on toughening its casino laws, giving its Casino Regulatory Authority the authority to impose more stringent fines that could reach as much as 10% of annual revenues generated by both Genting Singapore and Las Vegas Sands and their respective casinos, Resorts World Sentosa and Marina Bay Sands.
When word of those possible new sanctions came out, Maybank Kim Eng forecasted Genting to lose some traction in the market, and it didn’t take long for the shares to lower its value by 1.1% at S$1.39.
Now, its down to $1.26.
From $1.62 to $1.39 to $1.26.
Genting Singapore’s shares are dropping at a worrisome rate and there’s a legitimate cause for concern that this slide isn’t over yet. We’re confident that the company will turn things around in the second half of the year but seeing these numbers has certainly doused a chunk of that optimism.