Genting Singapore 2Q18 net profit up 3 percent as ‘luck factor’ weighs

Genting Singapore’s Resorts World Sentosa; taken 2018Genting Singapore’s Resorts World Sentosa; taken 2018

Genting Singapore reported on Friday that its second-quarter net profit rose 3 percent on-year to S$177.62 million, with the casino operator saying the “luck factor” weighed.

Revenue for the quarter ended 30 June slipped 6 percent on-year to S$560.30 million, it said in a filing to SGX after the market close on Friday. Adjusted earnings before interest, tax, depreciation and amortization, or ebitda, fell 9 percent on-year in the quarter to S$265.90 million, it said.

“In the gaming segment, our VIP rolling volume showed encouraging year-on-year growth but luck factor was not in our favour,” it said. But it noted that on a “hold-normalized basis,” Resorts World Sentosa would have generated an adjusted ebitda of around S$293 million.

Genting Singapore added that other segments of the business were more positive.

“Our signature attractions performed well during the second quarter of 2018 with average visitation exceeding 18,000 daily. Hotels continued to outperform industry with average occupancy of over 91 percent for the quarter,” it said.

For the first half of 2018, net profit rose 3 percent on-year to S$394.81 million, while revenue rose 4 percent on-year to S$1.235 billion, it said. Excluding the year-earlier one-off gain of S$96.3 million on the disposal of Genting Singapore’s integrated resort in South Korea, net profit would have grown 38 percent, it said.

GENS declared an interim divided of 1.5 Singapore cents a share, unchanged from the year-earlier period.

In its outlook statement, GENS said that Resorts World Sentosa was planning a series of gourmet and lifestyle events.

“Following the popularity of the gastronomic events last year, over the next two months, we will be bringing back the ‘RWS Street Eats’ featuring iconic street eats from Southeast Asia and ‘The Great Food Festival,’ Singapore’s largest curated food and lifestyle event led by international celebrity chefs,” Genting Singapore said.

It added that Japan’s Diet enacted the Integrated Resorts implementation bill in late July. That opens up the Japanese market for casino operators with integrated resorts.

“The group has been gearing up for this expansion opportunity and has been hiring a new team of Japanese nationals in different disciplines to prepare for the bid,” it said.

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