GEN Singapore 3Q profit down as gaming rev declines
Genting Singapore Ltd reported net profit of nearly SGD158.9 million (US$117.1 million) for the third quarter of 2019, down 24.5 percent on the comparable period a year earlier. That was due to a 6.7-percent decline in revenue in year-on-year terms, to nearly SGD596.1 million, said the firm in a Thursday filing to the Singapore Exchange after trading hours.
Genting Singapore, the operator of Resorts World Sentosa (pictured), said in its unaudited results that adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the third quarter were SGD278.0 million, down 12.8 percent from the prior-year period.
Gaming revenue for the period stood at approximately SGD360.8 million, 10.9 percent down on a year earlier. The company did not provide an explanation for the decline, nor a breakdown for VIP revenue versus that for the mass market.
Genting Singapore reported an impairment loss on trade receivables – including credit extended to VIP players but not paid back – of SGD25.0 million for the third quarter, compared to SGD12.9 million in the prior-year period.
Non-gaming revenue rose by 0.6 percent year-on-year to SGD234.6 million in the three months to September 30, compared to SGD233.2 million in the earlier reporting period.
The company said in commentary accompanying the results that its revenue and adjusted EBITDA for the period were negatively affected by a “confluence of headwinds”. It did not provide details, nor did it recommend a dividend for the quarter.
But it stated: “We continue to be positive in attracting the affluent market from the region and leverage on the growing Asian economies.”
The company added: “Notwithstanding a change in the international visitor arrival mix, our non-gaming businesses performed well.”
For the nine months ended September 30, Genting Singapore reported revenue of SGD1.87 billion, flat from a year earlier. Adjusted EBITDA for the period fell by 4.4 percent year-on-year, to SGD902.1 million, while net profit fell by about 12.0 percent to SGD532.8 million.
The quarterly results “exceeded our expectations due to higher-than expected VIP volume and lower-than-expected VIP rebates. That said, the year-on-year fall in the high-margin mass-market GGR accelerated,” said analyst Samuel Yin Shao Yang of Maybank Kim Eng Research in a Friday note.
In Thursday’s commentary, the company had said Japan remained the group’s “key focus for medium term growth and value creation” to its shareholders.
Genting Singapore said its Japan-based teams have been “working diligently and making extensive preparation works for the formal bidding process known as request for proposal (RFP) to be issued by cities”.
It added: “We have fully responded to Osaka’s request-for-concept (RFC) and are now preparing for Yokohama’s RFC.”
The group said additionally that the previously-announced expansion of Resorts World Sentosa “is well in progress” as the firm is preparing to commence “construction works in the second half of 2020”.
Genting Singapore has pledged to the government there to make a SGD4.5-billion further investment in its casino resort in the next few years, in return for its licence being extended until 2030.
“Beginning with the Adventure Dining Playhouse, which is scheduled to open late next year, visitors to Resorts World Sentosa can look forward to an exciting line up of new attractions and business venues unveiled every year over the next five years,” said the casino operator. Adventure Dining Playhouse is described by the company as an immersive dining and performance concept show, designed to engage guests.
(Updated 10am, Nov 8)
Related articles
Latest News
Sign up to our FREE Newsletter
(Click here for more)
