Genting Singapore bounces back with $88.2m H1 profit

Genting Singapore is back in the black for the half year ended June 30 after operations resumed at Resorts World Sentosa, albeit with fewer visitors than in pre-pandemic days.

The group posted earnings of $88.2 million, against a $116.7 million loss last year. The second quarter of 2020 was its worst quarter since its Singapore complex opened over a decade ago.

Despite improvements this year, the group sounded a sombre note on the back of new Covid-19 variants and strict reopening measures.

It noted after markets closed yesterday: "In the short term, we do not anticipate any measurable increase in business sentiment until we have greater visibility of the border reopenings."

First-half revenue rose 24 per cent year on year to $554.8 million, while earnings per share stood at 0.73 cent.

No interim dividend was declared due to the impact of the pandemic on the group's performance and the broader economy but the group said it intends to declare a final dividend.

The group acquired leasehold land to expand its Singapore facility during the first half, resulting in an outflow of $879.7 million for the purchase of plant, property and equipment.

It is also leading a consortium to build a gambling resort in the Japanese port city of Yokohoma, and is still awaiting the outcome of the bid.

Genting Singapore said the Singapore Government's support measures, including the $100 SingaporeRediscovers voucher scheme, have helped offset some of the challenges during the pandemic.

Still, ongoing travel restrictions between Singapore and its traditional Asian markets continue to "significantly impact" its performance, it said. "With the Covid-19 pandemic still raging in our regional markets, we believe a sustained and broad-based recovery in travel and tourism will be protracted and subject to a high degree of uncertainty."

Genting Singapore shares closed unchanged at 80 cents.

THE BUSINESS TIMES