Genting S'pore's Q1 net profit falls 26% on Covid-19 impact

Genting Singapore, the operator of Resorts World Sentosa (left), saw its net profit fall to $34.5 million as its revenue declined 32 per cent to $277.9 million. The firm said its earnings decline would have been more pronounced if not for the support
Genting Singapore, the operator of Resorts World Sentosa (above), saw its net profit fall to $34.5 million as its revenue declined 32 per cent to $277.9 million. The firm said its earnings decline would have been more pronounced if not for the support measures initiated by the Singapore Government. ST FILE PHOTO

Genting Singapore, the operator of Resorts World Sentosa, has posted in its first-quarter business overview a 26 per cent drop in net profit to $34.5 million for its first quarter ended March, while revenue declined 32 per cent to $277.9 million.

This was due to the Covid-19 impact that continued to weigh on its operational performance, the company said last Friday, adding that its earnings decline would have been more pronounced if not for the support measures initiated by the Singapore Government.

Under revenue, gaming revenue slid 19 per cent to $216.9 million, while non-gaming revenue plunged 56 per cent to $60.7 million.

Adjusted earnings before interest, taxes, depreciation and amortisation for its Singapore integrated resort fell 15 per cent to $135.1 million.

The company said the tourism sector is still hobbled by travel restrictions between its traditional markets, while it has also been "careful and calibrated" to resume its business to safeguard everyone's health and safety.

Meanwhile, international travel continues to suffer from significant disruption due to the resurgence of Covid-19 cases in several of the firm's key source markets.

It envisages that international visitor arrivals to Singapore, especially for leisure, will be unlikely to return in the near term.

To weather this tough period, Resorts World Sentosa has been developing creative events and promotions for domestic tourists.

For instance, it introduced all-in-one destination packages featuring tropical curated cuisines and a staycation itinerary, including tropical-themed performances at Universal Studios Singapore and the SEA Aquarium.

Revisions to the facility designs of the resort's planned $4.5 billion mega expansion are also ongoing, including health and safety protocols to reassure visitors, and sustainable urban features.

It has also obtained a temporary occupation permit for the remodelled Resorts World Theatre for its new experiential dining attraction, Once a Pirate, and will be embarking on show production and performer recruitment.

On the environmental, social and corporate governance front, it has a goal to work with Sentosa Development Corporation to transform Sentosa island into a carbon-neutral destination by 2030.

As for its growth and geographical diversification strategy, the firm is engaging stakeholders for the request for proposal (RFP) issued by Yokohama city.

The Japanese metropolis early this year announced its RFP timeline for casino groups to submit proposals to the city government.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on May 11, 2021, with the headline 'Genting S'pore's Q1 net profit falls 26% on Covid-19 impact'. Subscribe