GGRAsia – Genting Singapore 3Q profit up more than twofold q-o-q

Genting Singapore 3Q profit up more than twofold q-o-q

Nov 10, 2022 Newsdesk Latest News, Singapore, Top of the deck

Casino operator Genting Singapore Ltd reported net profit after taxation of nearly SGD135.8 million (US$96.8 million) for the third quarter of 2022, an increase of 123.6 percent from the prior-year period. The result was up 208.2 percent from the preceding quarter, according to highlights of third-quarter performance published on Thursday by the firm.

Revenue for the period was SGD519.7 million, up 106.6 percent from a year earlier. Judged quarter-on-quarter, such revenue rose by 49.1 percent.

Genting Singapore is the operator of Resorts World Sentosa (pictured in a file photo), one of Singapore’s two casino resorts. The firm is a subsidiary of Malaysian conglomerate Genting Bhd.

The casino operator reported gaming revenue of just below SGD382.0 million in the three months to September 30, up 96.2 percent from the prior-year quarter, and a 58.7-percent increase sequentially.

Genting Singapore recorded third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of SGD249.4 million, up 143.2 percent from a year ago. Measured sequentially, it was an increase of 73.3 percent, according to Thursday’s release.

The company said the overall improvement in Resorts World Sentosa’s operations reflected “the ongoing recovery of regional travel markets”. But, it stated, “such recovery has yet to return to the pre-pandemic levels.”

“The rebound in gaming revenue was led by more affluent and premium customers that are staying slightly longer,” it added.

Singapore’s tally of visitors for this year is likely to be at the “higher end” of the 4 million to 6 million forecast that the city-state’s authorities had mentioned previously, said in mid-October Alvin Tan Shen Hui, Singapore’s Minister of State for Trade and Industry.

The city-state has been one of the first jurisdictions in Asia to move to a living-with-Covid strategy, bolstered by a high local rate of vaccination. Singapore has been open to fully-vaccinated travellers since April 1. It also removed, with effect from April 26, all Covid-19 test requirements for fully-vaccinated visitors.

Genting Singapore stated on Thursday that work on a SGD4.5-billion expansion of Resorts World Sentosa, pledged to the city-state’s authorities, and known as “RWS 2.0”, was “proceeding expeditiously”.

“The construction of Minion Land at Universal Studios Singapore is progressing well and the expansion site for the aquarium [Singapore Oceanarium] has been handed over to the appointed contractor to commence construction works this month,” it added.

The firm also said it was investing in revamping its existing assets “to attract the affluent market”. The effort “includes a complete remake” of the Festive Hotel into a “boutique style accommodation,” scheduled to reopen “in the first quarter of 2023, boosting the resort’s room inventory by 389 keys,” said Genting Singapore.

In October, Genting Singapore announced the appointment of Lam Yi Young, a prominent figure in Singapore’s business sector, as deputy chief executive for its casino complex, with Andrew MacDonald affirmed as installed chief casino officer.

The company also cancelled and fully redeemed in October Japanese yen-denominated bonds in the principal amount of JPY20.0 billion (US$136.6 million at current exchange rates) that it had publicly offered in 2017 on an unsecured and unsubordinated basis.