UPDATE: Genting Singapore 4Q18 net profit rose 12 percent, but missed some analysts’ forecasts

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

This article was originally published on Thursday, 21 February 2019 at 17:32 SGT; it has since been updated.

Integrated casino-resort operator Genting Singapore reported on Thursday its fourth quarter net profit increased 12 percent on-year to S$150.18 million as both the gaming and non-gaming segments performed well. The results missed some analysts’ forecasts.

Revenue for the quarter ended 31 December rose 15 percent on-year to S$664.77 million, it said in a filing to SGX after the market close on Thursday.

“Our attractions business did well with average daily visitation of over 21,000 and an increase in average visitor spend across all offerings. Our hotels continued to outperform the industry with an occupancy rate of 95 percent,” Genting Singapore said.

Gaming revenue for the quarter rose 20 percent on-year to S$444.24 million, while non-gaming revenue was up 5 percent on-year at S$220.03 million, it said.

For the full year, Genting Singapore reported net profit of S$755.39 million, up 10 percent on-year, on revenue of S$2.54 billion, up 6 percent on-year. Excluding a year-earlier one-off gain from divesting its interest in a South Korean integrated resort, net profit would have risen 28 percent, it said.

Full-year net profit had been forecast around S$792.2 million on revenue of around S$2.59 billion, based on the average of four analysts’ forecasts; the range for the net profit forecast was S$723.1 million to S$863.3 million and the range for revenue forecasts was S$2.51 billion to S$2.74 billion.

“In 2018, the group delivered encouraging performance in both the gaming and non-gaming segments notwithstanding economic uncertainties and intensifying competition,” the casino and attractions operator said.

“Our marketing efforts on regional premium mass segment yielded positive results while our rolling business grew respectably. Meanwhile, our non-gaming businesses also experienced growth in both visitation and spending per pax from great curated events, innovative offerings and initiatives,” it added.

It declared a final dividend of 2.0 Singapore cents a share, unchanged from a year earlier.

In its update on its likely bid to operate an integrated resort (IR) in Japan, Genting Singapore said it was waiting for Japan’s government to publish detailed regulations.

“In the meantime, the group is deploying significant resources on the ground and actively developing bid design and concepts, and engaging with stakeholders to prepare for the formal bidding process, which is expected to commence in the second half of 2019,” it said.

It issued a cautious outlook.

“We are cautious of the ambiguous economic environment and on-going geopolitical friction that is clouding the growth of the Asian gaming and tourism market,” Genting Singapore said, adding it would continue to refine its marketing efforts.

“With increase in competition from newly opened gaming facilities, as well as aggressive marketing tactics, we continue to improve our customer experience,” it said, noting it was “dedicating substantial resources” for planned upgrades of Resorts World Sentosa.


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