Weakness in premium player segment hits Genting Singapore's Q1 earnings

Genting Singapore's net profit to plunged 73 per cent from a year ago to $62.7 million for the first quarter, while revenues fell 23 per cent to $639.2 million, due to continued weakness in its premium player business. -- PHOTO: ST FILE
Genting Singapore's net profit to plunged 73 per cent from a year ago to $62.7 million for the first quarter, while revenues fell 23 per cent to $639.2 million, due to continued weakness in its premium player business. -- PHOTO: ST FILE

SINGAPORE - Genting Singapore's net profit to plunged 73 per cent from a year ago to $62.7 million for the first quarter, while revenues fell 23 per cent to $639.2 million, due to continued weakness in its premium player business.

"Our premium gaming business continues to come under stress due to regional environmental factors. We do not expect any respite in the medium term, and are re-structuring our operational and marketing organisation to adjust to this change," the gaming company said.

"Additionally, in such circumstance, we have adopted a cautious approach in granting credit in this market segment and will be prudent in providing for our receivables. The year ahead will be challenging," it added.

Bad debt provisions for the first quarter swelled to nearly $76.3 million from $58.7 million a year ago.

Earnings per share for the quarter was 0.52 cent, down from 1.87 cents a year earlier, while net asset value was 61.4 cents, compared to 61.1 cents as at Dec 31, 2014.

Gaming revenue at Genting slipped 26 per cent in the first quarter to $494.9 million from a year ago.

Genting's rival, Marina Bay Sands, raked in Ebitda - a measure of operating profit - of US$415.3 million for the first quarter, down 4.6 per cent from a year ago, while revenue slipped 6.1 per cent to US$784.8 million, on the back of casino revenue falling 7.1 per cent to US$631.9 million.

Genting's non-gaming revenues fell 8 per cent to $144 million, while its hotel business saw a 93 per cent occupancy with average daily room rate at $381.