GGRAsia – GEN Sing warns of significant decline in 2Q profit

GEN Sing warns of significant decline in 2Q profit

Aug 05, 2015 Newsdesk Latest News, Singapore, Top of the deck

Casino firm Genting Singapore Plc, operator of the Resorts World Sentosa casino resort (pictured) in Singapore, has warned investors that it expects to report “a significant decline in net profits after tax” for the quarter ended June 30.

“This is due mainly to fair value loss on derivative financial instruments as a result of unfavourable market conditions and unrealised foreign exchange translation losses,” the firm said in a Tuesday filing to the Singapore Exchange.

Genting Singapore added: “Notwithstanding the foregoing, on a theoretical normalised hold basis, the group expects its adjusted EBITDA [earnings before interest, taxation, depreciation and amortisation] for the second quarter of 2015 to be comparable to the preceding quarter.”

The firm stated that it should announce its financial results for the three months ended June 30 on August 13.

Maybank IB Research and Morgan Stanley Asia Ltd last month forecast in separate notes that Genting Singapore’s second quarter EBITDA and revenue would likely be up quarter-on-quarter. Samuel Yin Shao Yang of Maybank said in his note previewing Genting Singapore’s second quarter numbers: “Assuming a VIP win rate of 2.85 percent, we expect a second quarter 2015 earnings EBITDA of SGD275 million [US$198.5 million], up 20 percent quarter-on-quarter.”