GGRAsia – GEN Singapore 1H profit US$206mln, names RWS president

GEN Singapore 1H profit US$206mln, names RWS president

Aug 10, 2023 Newsdesk Latest News, Singapore, Top of the deck

First-half net profit at the operator of the Resorts World Sentosa (RWS) casino complex (pictured) in Singapore jumped by 227.7 percent year-on-year, to SGD276.7 million (US$205.6 million).

On Thursday Genting Singapore Ltd also told the Singapore Exchange that it proposed a one-tier tax-exempt interim dividend of SGD0.015 per ordinary share, to be paid on September 22.

In other news given on Thursday, Genting Singapore said Lee Shi Ruh was being appointed as president of Resorts World Sentosa, with effect from September 1. She will oversee daily operations and report directly to the property’s chairman and chief executive Tan Hee Teck.

Her previous experience includes being chief financial officer of Genting Singapore. Most recently she was chief people officer of Resorts World Sentosa.

The half-year result for Genting Singapore was on group-wide revenue that rose 62.9 percent year-on-year, to SGD1.08 billion, said the firm in a filing.

Cost of sales in the six months to June 30 went up 46.3 percent year-on-year, to SGD677.2 million.

First-half adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) went up 68.4 percent year-on-year, to SGD452.5 million.

Resorts World Sentosa generated adjusted EBITDA of US$268.4 million for the second quarter of 2023, a 37-percent improvement from the preceding quarter, said its promoter.

The better EBITDA performance was “a result of the rebound in non-gaming business, a higher-than-theoretical VIP win rate and recovery in regional gaming business,” stated the company.

Gaming revenue in the first six months of 2023 expanded 57.2 percent year-on-year, to SGD746.9 million.

The firm said in commentary on first-half performance: “Foreign visitor arrivals into Singapore continued to improve. However, limited air capacity from certain regional countries and elevated airfares affected leisure travel.”

First-half non-gaming revenue improved 84.9 percent year-on-year, to SGD326.9 million. The firm said there was also a circa 31 percent gain quarter-on-quarter within the first half.

That was “due to improved… attendance” at resort attractions, and improved “spend per customer, driven by intensified marketing and promotional efforts,” noted Genting Singapore.

As at 30 June 2023, the gross amount of the group’s trade receivables was SGD227.0 million, with most of it “related to casino debtors”. As of the same date, Genting Singapore’s allowance for impairment on trade receivables was just under SGD105.6 million.

The group also gave some commentary on improvements to Resorts World Sentosa’s infrastructure, including its pledge to the Singapore government to spend SGD4.5 billion on expansion, and commonly referred to as “RWS 2.0”.

Genting Singapore referred to an already-mentioned revamp of The Forum shopping area, which it characterised as part of “RWS 1.5”.

The company stated: “As part of RWS 1.5, we have embarked on the renovation work of The Forum in May 2023. This will create a 20,000 square-metre [215,278-sq. feet] central lifestyle cluster, offering a wide variety of upscale restaurants, specialty shops, entertainment and iconic concept stores.”

The company added: “The construction of Minion Land at Universal Studios Singapore and the Singapore Oceanarium under RWS 2.0 are progressing well.”

It also noted: “Other components of Resorts World Sentosa transformation, including the new Waterfront building, Equarius Hotel extension and the new Health and Wellness Centre are targeted to commence construction in 2024 following government approvals.”