GGRAsia – GEN Sing posts US$26mln 1Q profit, down sequentially

GEN Sing posts US$26mln 1Q profit, down sequentially

May 07, 2021 Newsdesk Latest News, Singapore, Top of the deck

Casino operator Genting Singapore Ltd reported a net profit of SGD34.5 million (US$25.9 million) for the first quarter of 2021, down 73.7 percent from the previous quarter. The result was down 25.9 percent in year-on-year terms, said the company in a filing to the Singapore Exchange via some highlights of first-quarter performance.

Genting Singapore is the operator of Resorts World Sentosa (pictured in a file photo), one of Singapore’s two casino resorts. The firm is a subsidiary of Malaysian conglomerate Genting Bhd.

The company reported revenue of SGD277.9 million for the period, down 11.6 percent from the fourth quarter of 2020. It was a decline of 31.7 percent from a year earlier.

Gaming revenue for the first quarter this year rose by 1.6 percent sequentially, to nearly SGD216.9 million; but it was down 19.0 percent from the prior-year period.

Genting Singapore recorded adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of SGD128.1 million, 39.4-percent less than in the last quarter of 2020, and down 15.5 percent from a year ago.

The firm noted in prepared remarks that the Covid-19 pandemic “continued to weigh” on the group’s operational performance during the first quarter of 2021. Genting Singapore also said that the year-on-year decrease in net profit “would have been more pronounced if not for the various support measures initiated by the Singapore government.”

The company said additionally that Singapore’s tourism sector was “still hobbled” by travel restrictions in place as countermeasures against the pandemic.

“While the global rollout of vaccines has begun, international travel continues to suffer from significant disruption due to resurgence of virus cases in several of our key source markets,” stated Genting Singapore.

It added: “It is envisaged that international visitor arrivals to Singapore, especially for leisure purposes will be unlikely to return in the near term.”

The casino operator also said that revisions to “facility designs” related to the group’s SGD4.5 billion expansion plan of Resorts World Sentosa were ongoing, in order to “include health and safety protocols”.

Genting Singapore has declared itself a contender for a Japan casino licence. In its latest update, the company stated: “We continue to engage with the relevant stakeholders for the request-for-proposal (RFP) issued by Yokohama City.”

Genting Singapore posted a SGD69.2-million net profit for full-year 2020, down 89.9 percent from the previous year.