Genting Singapore Q2 profit climbs 24%

Resorts World Sentosa's attractions did well during the second quarter with the average number of visits exceeding 18,000 daily. Its Universal Studios Singapore aims to enhance visitor experience with innovative offerings such as TrollsTopia and Jura
Resorts World Sentosa's attractions did well during the second quarter with the average number of visits exceeding 18,000 daily. Its Universal Studios Singapore aims to enhance visitor experience with innovative offerings such as TrollsTopia and Jurassic World: Explore & Roar (above).PHOTO: RESORTS WORLD SENTOSA

Boost from growth in other operating income, savings from perpetual securities redemption

Despite lower revenue, gaming stalwart Genting Singapore emerged from its second quarter with a 24 per cent year-on-year rise in net profit to $177.6 million.

The results for the three months ended June 30 were helped by higher other operating income and savings from the redemption of its $2.3 billion 5.125 per cent perpetual subordinated capital securities.

Revenue slid six per cent to $560.3 million, while earnings per share climbed to 1.47 cents from 1.19 cents a year ago.

In the gaming segment, luck eluded the group, although the VIP segment showed signs of growth.

Gaming revenue at integrated resort Resorts World Sentosa fell 8 per cent to $406.15 million, while non-gaming revenue edged up 1 per cent to $153.53 million. Adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) was down 9 per cent at $265.9 million. Other operating income was $35.1 million, up 67 per cent from a year ago.

Resorts World Sentosa's attractions performed well during the second quarter with the average number of visits exceeding 18,000 daily.

Its Universal Studios Singapore aims to enhance visitor experience with innovative offerings such as TrollsTopia and Jurassic World: Explore & Roar.

  • AT A GLANCE

  • REVENUE: $560.3 million (-6%)

  • NET PROFIT: $177.6 million (+24%)

  • DIVIDEND PER SHARE: 1.5 cents (unchanged)

"Hotels continued to outperform industry with average occupancy of over 91 per cent for the quarter," Genting said. "In the gaming segment, our VIP rolling volume showed encouraging year-on-year growth but the luck factor was not in our favour."

For the six months to June 30, net profit attributable to shareholders was up 22 per cent at $394.81 million, while revenue increased 4 per cent to nearly $1.24 billion.

Genting Singapore has proposed an interim dividend of 1.5 cents per share, payable on Sept 20.

The group has been gearing up for an expansion opportunity in Japan and has been hiring a new team of Japanese nationals to prepare for the bid, it also said. Japan's Integrated Resorts Implementation Bill was passed on July 20, which will allow casinos to be opened in the country.

Genting Singapore separately announced that its independent, non-executive director Tjong Yik Min will be appointed lead independent director, taking over from Mr Koh Seow Chuan with immediate effect.

Mr Koh, who had served as lead independent director since Nov 4, 2013, remains an independent non-executive director, as well as chairman of the nominating committee and a member of the audit and risk committee. Mr Tjong has also been appointed a member of the nominating committee.

The counter eased three cents to $1.23 yesterday before the results.

A version of this article appeared in the print edition of The Straits Times on August 04, 2018, with the headline 'Genting S'pore Q2 profit climbs 24%'. Print Edition | Subscribe