Genting Singapore's Q3 profit gets a boost from VIP business

Resorts World Sentosa also debuted a series of lifestyle events, including "RWS Street Eats" and "The Great Food Festival", a curated food and lifestyle event led by 30 international celebrity chefs.
Resorts World Sentosa also debuted a series of lifestyle events, including "RWS Street Eats" and "The Great Food Festival", a curated food and lifestyle event led by 30 international celebrity chefs.ST PHOTO: KUA CHEE SIONG

Re-positioning of Resorts World Sentosa as lifestyle brand also working out, company says

An increase in business from high-rollers and other segments lifted third-quarter numbers at Genting Singapore.

Net profit came in at $143.79 million, a jump of 35 per cent over the same period last year.

Including $24.91 million apportioned to holders of perpetual securities, the gaming firm posted a 24 per cent rise in net profit to $168.69 million for the period under review.

Revenue rose 8 per cent to $629.87 million, thanks to stronger VIP and premium mass business volumes, with gaming turnover contributing $452.05 million - 11 per cent more year on year - to the topline.

Earnings per share came in at 1.2 cents compared with 0.89 cent a year earlier, while net asset value per share firmed to 60.8 cents compared with 60.1 cents as at Dec 31.

"Our gaming business grows steadily with our VIP business showing respectable increase in volume, complemented with an acceptable bad-debt provision ratio," said Genting.

Operating profit increased 24 per cent to $226.08 million on the back of higher revenue as well as an 11 per cent drop in the cost of sales.

Its attractions business saw "higher average visitor spend" and 5 per cent growth in the daily average visitorship, which exceeded 21,000.

Ebitda - a measure of operating income - rose 37 per cent to $320.1 million, underpinned by an improved operating margin and lower net impairment on receivables as a result of a more measured credit policy, the gaming group said.

Its attractions business saw "higher average visitor spend" and 5 per cent growth in the daily average visitorship, which exceeded 21,000. The hotel business had an average occupancy rate of 93 per cent.

Genting's integrated resort, Resorts World Sentosa's (RWS) Maritime Experiential Museum is slated for a soft launch in the upcoming festive season, while a new fine-dining Japanese restaurant is also due to open.

During the quarter, RWS debuted a series of lifestyle events, including "RWS Street Eats" featuring 20 street eats from South-east Asia and "The Great Food Festival", a curated food and lifestyle event led by 30 international celebrity chefs.

"These events have collectively attracted almost 170,000 visitors, which is testimony that our approach to re-position RWS as a lifestyle brand is working," said Genting.

  • AT A GLANCE


    REVENUE: $629.87 million (+8%)

    NET PROFIT: $143.79 million (+35%)

Last month, the group successfully raised 20 billion yen (S$239 million) in a Samurai bond in Japan, following the establishment of a Japan branch office.

The funds are meant to support corporate activities in Japan including preparatory works in anticipation of the integrated resort execution Bill passage and bidding for gaming licences.

Singapore's other integrated resort, Marina Bay Sands, also had a better third quarter. Its ebitda expanded by 13 per cent year-on-year to US$442 million (S$603 million), bankrolled by higher contributions from the VIP segment as well as a tighter control on costs.

Genting closed up one cent at $1.235 yesterday.

A version of this article appeared in the print edition of The Straits Times on November 07, 2017, with the headline 'Genting Singapore's Q3 profit gets a boost from VIP business'. Print Edition | Subscribe