Genting Singapore swings to 1H21 net profit on government support measures

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

Genting Singapore reported Thursday it swung to a first half net profit of S$88.22 million from a year-ago net loss of S$116.68 million after operations at Resorts World Sentosa were largely shuttered for the Circuit Breaker period in 2020 to stem the spread of the Covid-19 virus.

The Circuit Breaker period ran from 6 April to 30 June last year.

Revenue for the January-to-June period increased 24 percent on-year to S$554.79 million, the integrated casino-resort operator said in a filing to SGX.

The company pointed to government support for the improvement in results.

“We are grateful to the Singapore Tourism Board and the Singapore government’s support measures including the $100 SingapoRediscovers Vouchers scheme made available to Singaporeans aged 18 and above for boosting the local tourism industry. This support helped mitigate the challenging environment that our group is facing,” Genting Singapore said in the statement.

The operator of Singapore’s Universal Studios theme park was cautious in its outlook.

“With cross-border travel being severely curtailed in our traditional markets, most of our key offerings at RWS continued to operate at considerably lower levels compared to pre-Covid-19 pandemic,” the company said. “The current situation only caters to a limited market of the smaller local population. In the short term, we do not anticipate any measurable increase in business sentiment until we have greater
visibility of the border openings.”

For the company’s geographical diversification plan, it said it teamed up with Japanese companies including Sega Sammy Holdings, Sohgo Security Services, Kajima Corp., Takenaka Corp. and Obayashi Corp. to submit a bid for Yokohama City’s request for proposal.

Genting Singapore, also referred to as GENS, said it was still awaiting the outcome of its bid.

GENS did not declare a dividend, unchanged from a year earlier, citing “the ongoing severity and uncertainty of the impact of the Covid-19 pandemic.” But GENS added it plans to declare a final dividend for the full year.