Genting Singapore reports 3Q18 net profit rose 25 percent on attractions business strength

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

Genting Singapore reported net profit for the third quarter rose 25 percent on-year to S$210.41 million amid a strong performance in its attractions business.

Revenue for the quarter ended 30 September rose 1 percent on-year to S$639.06 million, it said in a filing to SGX after the market close on Thursday.

For the Singapore integrated resorts, gaming revenue slipped 1 percent on-year in the quarter to S$445.36 million, while non-gaming revenue grew 9 percent on-year to S$192.84 million, it said.

“The attractions business of Resorts World Sentosa (RWS) achieved strong results especially Universal Studios Singapore, S.E.A. Aquarium and Adventure Cove Waterpark,” Genting Singapore said. “During the quarter, we attained an average daily visitorship of over 22,000 and an increase in average visitor spend across all offerings.”

The hotel business had an average occupancy of over 97 percent in the quarter, it said.

“Our mass gaming business delivered stable performance. Our VIP rolling volume continued to grow, and we remain prudent in our credit extension,” Genting Singapore said.

Other operating expenses for the quarter fell 97 percent on-year to S$1.16 million from S$39.93 million in the year-ago quarter, Genting Singapore said.

For the nine-month period, revenue rose 3 percent on-year to S$1.87 billion, while net profit rose 10 percent on-year to S$605.22 million, it said.

In its outlook, Genting Singapore pointed to its gourmet lifestyle events as continuing to attract visitors.

“We will continue to pursue distinctive and iconic offerings to cement our position as Asia’s premier lifestyle destination,” it said.

But it added, “With rising global uncertainties and intensifying competition within the region, we will look to sharpen our marketing focus on the regional premium mass customers by refreshing our facilities and products to enhance their gaming experience. Meanwhile, we will continue to pursue VIP rolling volume with measured credit risk appetite.”

Analysts have pointed to concerns that the ongoing U.S. trade war could tighten credit to VIPs in the export trade, making it more difficult for them to repay gambling debts.

On the closely watched upcoming bidding for integrated resorts in Japan, Genting Singapore said, “we continue to work steadily towards the expected bidding process for integrated resorts (IRs) in the second half of 2019.”

It added that it was fielding requests for information, views and comments from “specific cities” which have shown interest in obtaining an integrated resort.

“Concurrently, we have also engaged in discussions with stakeholders to understand the environment and the localities where such cities are involved,” it said.

Analysts have pointed to Genting Singapore as a strong contender to win an IR bid in Japan as it can meet liquidity requirements and, along with Las Vegas Sands, would be the only potential candidates which have previously successfully developed an IR as an accepted tourist destination.