Genting Singapore reports 1Q19 net profit fell 5 percent on lower gaming revenue

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

Genting Singapore reported Thursday its first-quarter net profit fell 5 percent on-year to S$205.47 million as gaming revenue declined.

Revenue for the quarter ended 31 March fell 5 percent on-year to S$640.36 million, the integrated-resort operator said in a filing to SGX after the market close.

Gaming revenue in the quarter fell 8 percent on-year to S$430.18 million, while non-gaming revenue increased 1 percent on-year to S$209.29 million, Genting Singapore said.

Genting Singapore said it continued to perform “healthily” in the first quarter.

“The group’s non-gaming business registered its eighth consecutive quarter of year-on-year revenue growth with higher spend per visitor,” the company said.

The key attractions had average daily visitation of more than 19,000, while hotel occupancy stayed high at 93 percent, the filing said. It added that the Universal Studios Singapore theme park has begun operating extended hours on Fridays, Saturdays and some public holidays.

But the integrated casino-resort operator had a cautious outlook.

“Geopolitical frictions continue to cast a cloud of uncertainty for 2019,” Genting Singapore said.

“Notwithstanding challenges from both the local and regional economies, the group continues its marketing efforts especially towards the regional premium mass segment,” it added.

On its plans to bid for an integrated-resort licence in Japan, the company said some cities were conducting feasibility studies and the request-for-concept process to engage in dialogues with interested operators.

“The group is stepping up its efforts and deploying more resources to be seriously engaged in the anticipated competitive bid process,” Genting Singapore said, adding it expected cities to start the request-for-proposal process once the Japanese government publishes national guidelines for the integrated resorts.

“Backed by the solid track record of operating in a highly respected jurisdiction and reinforced by a robust balance sheet, the group is well positioned to deliver a compelling bid that will showcase a large-scale integrated resort destination which will enhance Japan’s tourism appeal and make significant contributions to its tourism economy,” Genting Singapore said.

 

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