Luck not with Genting Singapore as it posts 36% drop in Q4 net profit

Casino operator Genting Singapore's net profit fell 30 per cent in the fourth quarter as gaming revenue declined, hurt by poor performance in its premium segment. -- ST PHOTO: KUA CHEE SIONG
Casino operator Genting Singapore's net profit fell 30 per cent in the fourth quarter as gaming revenue declined, hurt by poor performance in its premium segment. -- ST PHOTO: KUA CHEE SIONG

SINGAPORE - Genting Singapore's ebitda plunged 24 per cent from a year ago to $190.2 million for the fourth quarter, while revenues slipped 8 per cent to $637.9 million, due to its underperforming premium player business.

The casino operator said its premium player business was hit by a "significant below average win percentage and (VIP) rolling volume.

Bad debt provisions for the fourth quarter swelled to nearly $82 million from $57.5 million a year ago; and jumped to $262 million for full year 2014 from nearly $185 million a year ago.

Meanwhile, its net profit fell 36 per cent from a year ago to $89.2 million for the fourth quarter. Earnings per share for the quarter was 0.73 cent, down from 1.15 cents a year earlier, while net asset value was 61.1 cents, compared to 60 cents as at Dec 31, 2013.

The group proposed a final dividend of one cent a share.

Gaming revenue at Genting slipped 9 per cent in the fourth quarter to $461.3 million from a year ago.

Genting's rival, Marina Bay Sands, raked in ebitda of US$518.5 million for the fourth quarter, more than double from a year earlier, while revenue jumped 27 per cent to US$838.6 million, on the back of casino revenue increasing 34 per cent to US$674.4 million.

Genting's non-gaming revenues fell 4 per cent to $176 million, while its hotel business saw a 93 per cent occupancy with average daily room rate at $422.