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Genting Singapore (SGX: G13) (OTCQX: GIGNF) shares are up 4% today. The G13 share price rise comes on the back of the first half results which show a 68% rise in profits. As the market has been thinking for some time – but then lost faith in – a tourism business should benefit from the return of tourism. For us in the Western Hemisphere we’ve got to recall that lockdowns were on a different timescale out East. So the effects on tourism reliant businesses were shifted.
Genting’s profits: “Genting Singapore has announced a strong first half of 2023, with adjusted EBITDA rising 68 percent to SG$452.5 million ($336 million), as consolidated revenue rose by 63 percent yearly to SG$1.1 billion ($817 million).
According to the Thursday filing, the operator of the Resorts World Sentosa (RWS) casino complex posts a net profit of SG$276.7 million ($206 million), up 228 percent from 1H22.”
That is the sort of thing we’ve been looking for, obviously. This is also a follow on from the last full year report at Genting: “Genting Singapore (SGX: G13) (OTCPK: GIGNY) shares are up 3.5% at midday in Singapore as the implications of last week’s results announcement sink in. Those results were good, revenue up 60%, an 84% increase in gross profit to $601 million and so on.”
Genting Singapore share price from Google Finance
Those annual results are what caused that peak there in that share price chart. There was, as we can see, considerable fall back in the G13 share price: “As we can see, the price was rising in anticipation of the news two weeks back. Then rose again strongly – for a corporate of this size that is a significant price increase – then the results were announced. And now we seem to be flatlining at this new and higher level.” And then at Genting: “Genting Singapore (SGX: GENS) shares actually fell 7% today on their profits report. Which is a bit of a surprise as quarterly profits actually tripled – yes, up by three times. The travel recovery is happening, people are visiting the resort and casinos, things are going great. But less great than the general audience out here thought they were going to go, therefore the share price fall. Expectations were running ahead of reality that is.”
Expectations matter that is. And it’s entirely possible for expectations to get ahead of reality. Which is what has been happening. But now that we’ve the H1 results perhaps we’re seeing results getting ahead of expectations.
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