Genting Singapore 3Q earnings double to S$136.6 mil

SINGAPORE (Nov 4): Genting Singapore’s third-quarter (3Q) earnings doubled to S$136.6 million (RM411.63 million) from a year ago. Revenue fell 9% to S$581.5 million but costs of sales fell a steeper 18% to S$367 million.

Revenue from Resorts World Sentosa (RWS) fell 9% to S$581.5 million, dragged down by a 10% drop in gaming revenue to S$407.4 million, and a 6% drop in non-gaming revenue to S$173.3 million. RWS’ earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 14% to S$239.4 million.

Genting says Universal Studios Singapore, SEA Aquarium and Adventure Cove Waterpark attractions recorded a daily average visitation of over 20,000.

All its hotels maintained strong occupancy rates of over 92%. During the quarter, the group also repaid S$387.5 million of its bank borrowings.

For the nine months ended Sept 30, 2016, the group registered revenue of S$1.7 billion and adjusted Ebitda of S$545.3 million.

“The group performed very well in this third quarter of 2016, with adjusted Ebitda doubling to S$233.6 million over the last quarter, and grew 12% on a year-on- year basis. This achievement has been the fruit of our ongoing commitment to focus on better margin business and managing operational efficiency for better margins,” Genting Singapore said in its financial statements released yesterday.

“With the ongoing uncertainty in Asia’s gaming industry, we remain cautious of the VIP business. Since early 2016 we have scaled down this business segment, and the provision for bad debts related to this segment has consequently been reduced.

“We will continue to see improved margins in this segment over the next few quarters. Together with a measured approach in the premium mass market, we are confident of a sustainable earnings growth into the next year,” it added.