GEN Singapore 3Q profit up, pledges US$5bln investment

Nov 13, 2023 Newsdesk Latest News, Singapore, Top of the deck  

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Casino operator Genting Singapore Ltd reported generated third-quarter revenue of just below SGD690.0 million (US$507.1 million), up 15.8 percent from the preceding quarter. Judged year-on-year, such revenue rose by 32.7 percent.

The company posted a net profit after taxation of nearly SGD216.3 million for the three months to September 30, a 46.7-percent sequential increase. The result was up 59.3 percent from the prior-year period, according to highlights of third-quarter performance published on Friday by the firm.

Genting Singapore is the operator of Resorts World Sentosa, one of Singapore’s two casino resorts. The group parent is Malaysian conglomerate Genting Bhd.

In Friday’s announcement, Genting Singapore said its board had approved a total investment of about SDG6.8 billion to upgrade and expand Resorts World Sentosa (RWS).

The figure includes “amounts which have been spent and the remainder to be invested over the next eight years,” stated the company. That was a reference to a previous SGD4.5-billion pledge to the city-state’s authorities for the expansion of the complex, known as “RWS 2.0”.

“We are confident that this investment will firmly anchor Resorts World Sentosa as the most sought-after tourism destination in Asia, and propel the group’s strong future growth. This investment will be funded through internal resources,” said Genting Singapore.

The company said that what it termed its “Waterfront development” had received the local “government’s provisional permission,” with construction “set to commence in 2024”.

The Waterfront site (pictured in an artist’s rendering) is due to offer approximately 700 hotel rooms and “biophilic architecture”, designed by international architecture firm Benoy.

The casino firm also said that construction of “RWS 2.0” was on track. “The transformation of the Forum, the Minion Land in Universal Studios Singapore and the Singapore Oceanarium, are progressing well and expected to soft open in early 2025,” it stated.

In Friday’s release, the casino operator said it recorded gaming revenue of just below SGD459.6 million in the April to September period, up 12.9 percent from the preceding quarter, and a 20.3-percent increase from a year ago.

“On a hold-normalised basis, gross gaming revenue (GGR) improved 31 percent quarter-on-quarter to SGD715.2 million, exceeding the levels of 2019 [before the pandemic] for both VIP and mass gaming segments,” stated the company in its release.

Genting Singapore recorded third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of SGD345.4 million, up 32.5 percent quarter-on-quarter. Measured in year-on-year terms, it was an increase of 38.5 percent.

The firm said the overall improvement in Resorts World Sentosa’s operations reflected the “sustained recovery of travel and tourism” in the region.

(Image credit: Resorts World Sentosa)

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