Genting Singapore enjoyed a blow-out second quarter, as the Resorts World Sentosa operator continued to pare down bad debt provisions while raking in better gaming revenue from its premium player business.

For the second quarter ended June 30, the company returned to the black with a net profit of $143.3 million, reversing from a loss of $10.5 million in the same period last year - due in part to a gain of $96.3 million from the sale of its 50 per cent stake in the Jeju integrated resort on Jan 3.

Revenue jumped 24 per cent to $596.1 million on a higher rolling win percentage in the premium player business and lower bad debts. Gaming revenues jumped 33 per cent to $442.3 million from $331.9 million.

Bad debts narrowed to $14.7 million for the quarter from $53.6 million a year earlier, owing to the "execution of a more measured credit policy".

For the quarter, it reported earnings per share of 1.19 cents compared with loss per share of 0.09 cent. Net asset value came to 61.2 cents per share as of June 30, compared with 60.1 cents as of Dec 31 last year.

Adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) jumped 152 per cent to $292.7 million from $116.1 million a year ago, as "all major businesses registered stronger Ebitda on the back of improved operating margin... and lower impairment of receivables", it said.

Rival Marina Bay Sands (MBS) posted a net profit of US$492 million (S$669 million) for the second quarter, up 37.8 per cent. Revenue rose 17.7 per cent to US$836 million, helped by a 23.9 per cent increase in gaming turnover to US$690 million. VIP gaming revenue jumped 29.2 per cent to US$8.7 billion in the three months to June 30.

UOB Kay Hian, in a note on Monday, maintained a market weight on the Singapore gaming sector. It noted that MBS' "surprising growth in VIP gaming volume in the second quarter only modestly lifts our industry outlook, given rival Genting Singapore's cautious stand on credit extension to VIPs. Meanwhile, the mass market has yet to see a strong catalyst".

The broker kept a hold call on Genting Singapore, despite expecting "positive share price momentum... as early as in 2018, when it submits its bid for a Japanese gaming licence after the Japanese government issues its request for proposals" for a Japan integrated resort.

For the quarter, Genting Singapore's attractions business pulled in daily average visitations of more than 19,000, while its hotel business reported an occupancy rate above 95 per cent.

It will pay an interim dividend of 1.5 cents a share on Sept 20. It did not declare any dividend at half time last year.

Shares of Genting closed up 1.3 per cent or 1.5 cents at $1.18 before the results were released.