Genting Singapore reports surge in Q3 earnings, surprises with interim dividend payout

The casino entrance of Resorts World Sentosa.
The casino entrance of Resorts World Sentosa. ST PHOTO: KUA CHEE SIONG

SINGAPORE - Earnings at casino operator Genting Singapore more than doubled during the third quarter despite a slimmer revenue.

Net profit for the three months ended Sept 30 rocketed to $106.9 million, compared with the $37.2 million in the same period a year ago.

Turnover slipped 9 per cent to $581.5 million, as gaming revenue at its integrated resort in Sentosa dropped 10 per cent to $407.4 million.

Net profit for the nine months to Sept 30 rose 29 per cent to $107.2 million, while revenue fell 10 per cent to $1.67 billion.

The group has proposed an interim dividend of 1.5 cents per share, to be paid out on Dec 7. No dividend was declared previously.

Earnings per share for the quarter came in at 0.89 cents, compared with 0.31 cents previously. Net asset value per share stood at 60.4 cents as at Sept 30, slightly lower than the 61 cents as at Dec 31 last year.

Genting Singapore said in its earnings report on Thursday that its solid performance this quarter came on the back of its "ongoing committment to focus on better margin business and managing operational efficiency for better margins".

"With the ongoing uncertainty in the gaming industry in Asia, we remain cautious of the VIP business. Since early 2016, we have scaled down this business segment and the provision for bad debts related to this segment has consequently reduced. We will continue to see improved margins in this segment over the next few quarters," it said.

Genting Singapore shares closed 1.5 cents or 2 per cent higher at 76 cents on Thursday. The results were announced after market closed.