Genting Singapore posts 2021 net profit more than doubled despite 2H Covid restrictions

Lego store at Genting Singapore's Resorts World Singapore. Photo taken November 2021Lego store at Genting Singapore's Resorts World Singapore. Photo taken November 2021

Casino-resort operator Genting Singapore reported Thursday its 2021 net profit more than doubled to S$183.35 million despite the Singapore government imposing fresh measures in the second half to stem the spread of the Covid-19 virus.

“We are appreciative of the Singapore government’s support measures, including the Jobs Support Scheme and the $100 SingapoRediscovers vouchers that partially mitigated the negative impact of the Covid-19 pandemic on the group’s financial performance,” Genting Singapore said in the statement filed to SGX.

Revenue for the 12 months ended 31 December was nearly flat at S$1.07 billion, the integrated casino-resort operator said.

For the second half of the year, Genting Singapore said its net profit fell 49 percent on-year to S$95.1 million as the integrated resort’s visitor numbers dropped amid an increase in Covid cases in the community and the emergence of the Omicron variant.

“A series of enhanced safe management measures, such as the reduction in group size for social gathering and prohibition of dining-in at Food and Beverage (F&B) establishments, were introduced to contain the spread of the virus. These had a profound negative impact on our operating capacity and visitor arrivals,” the company said.

Genting Singapore declared a final dividend of 1 Singapore cent, unchanged on-year.

Outlook

In its outlook, Genting Singapore was cautiously optimistic.

“Whilst the Covid-19 pandemic has severely impacted the business of the group, there are signs that allow us a sense of optimism for the travel and tourism industry. We are hopeful that with further relaxation of Singapore’s Covid-19 related regulations and gradual resumption of mutual vaccinated travel lanes (VTLs), more travellers will return to Singapore in 2022,” GENS said.

“However, such tourism flow is expected to be mostly small groups of FIT (Free Independent Traveller) leisure and business travellers,” the company added.

GENS said it was moving forward with expansion plans at Resorts World Sentosa, including a new Minion Land themed zone at Universal Studios Singapore and the Singapore Oceanarium. Around S$400 million will be invested this year for Resorts World Sentosa (RWS) additions and refurbishment works, GENS said.