GEN Singapore 3Q EBITDA halved as gaming revenue slips

Nov 08, 2024 Newsdesk Latest News, Singapore, Top of the deck  

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Genting Singapore Ltd, the operator of the Resorts World Sentosa casino resort (pictured), reported a net profit after taxation of SGD79.4 million (US$59.8 million) for the three months to September 30, down 63.3 percent from a year earlier. Such profit fell by 27.5 percent relative to the second-quarter result, said the casino operator in a Thursday filing.

Revenue in the July to September period declined by 18.5 percent from the prior-year period, to SGD561.9 million. Revenue was down 1.6 percent quarter-on-quarter.

Third-quarter adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) were just above SGD163.9 million, 52.5-percent lower than the prior-year period. Adjusted EBITDA declined 18.5 percent sequentially, according to the filing.

“The quarter-on-quarter decline in the group’s performance was mainly attributable to lower VIP rolling volume and win rate,” stated the casino firm.

“The non-gaming business improved due to seasonality, despite the full closure of the Hard Rock Hotel for renovation and rebranding, and the S.E.A. Aquarium’s weekly two-day closure for its expansion into the Singapore Oceanarium,” it added.

The first reference was to the March 2 shuttering of that hotel brand, as Genting Singapore proceeds with a SGD6.80-billion investment to upgrade the complex.

Genting Singapore reported third-quarter gaming revenue of SGD330.0 million, down 28.2 percent from the prior-year period. Judged sequentially, gaming revenue was down 13.5 percent.

Non-gaming revenue in the three months to September 30 was just under SGD231.8 million, a slight improvement from a year ago, and up 22.2 percent quarter-on-quarter.

The company stated: “Amidst the slower recovery of international visitor arrivals to Singapore, increased competition and global uncertainty, Resorts World Sentosa continued to accelerate its transformation to enhance its destination appeal and visitor experiences.”

Earlier this month, Genting Singapore said Andrew MacDonald had “stepped down” from his position as chief casino officer at Resorts World Sentosa Pte Ltd, the entity that runs the casino resort complex.

On Thursday the company also gave some updates on its new non-gaming elements, including its expansion project, called “RWS 2.0”.

“As we progress with RWS 2.0 developments, Resorts World Sentosa will be unveiling new and elevated visitor experiences progressively in phases,” noted the firm.

Resorts World Sentosa is set to launch on November 22 an interactive presentation themed on the “Harry Potter” entertainment franchise.

In Thursday’s filing, Genting Singapore said Universal Studios Singapore’s new themed zone, Illumination’s Minion Land, is scheduled to “open in the first quarter of 2025”.

The firm also said construction work for the new Waterfront development, including two hotels totalling 700 rooms, “will commence in November 2024”.

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