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Singapore – Revenue dips for Genting Singapore due to low hold

By - 6 August 2018

Revenue for Genting Singapore dropped by six per cent to SG$560.3m in the second quarter of 2018 due to low hold in both the VIP and mass segments of its casino operation at Resorts World Sentosa.

The group reported Adjusted EBITDA of $265.9m.

The company stated: “Resorts World Sentosa continues to be at the forefront of Singapore’s leisure and entertainment industry, attracting visitors from all around the world. Our signature attractions performed well during the second quarter of 2018 with average visitation exceeding 18,000 daily. Hotels continued to outperform industry with average occupancy of over 91 per cent for the quarter. In the gaming segment, our VIP rolling volume showed encouraging year-on-year growth but luck factor was not in our favour. On a hold-normalised basis, Resorts World Sentosa would have generated an Adjusted EBITDA of approximately $293m.

“For the half year ended 30 June 2018, our group delivered a steady performance with growth in both the gaming and non-gaming businesses. The Group recorded revenue of $1,235.4m and Adjusted EBITDA of $624.8m, growing four per cent and eight per cent respectively, as compared to the previous year. We achieved significant net profit growth of 38 per cent, excluding the prior year one-off gain of $96.3m on disposal of the group’s interest in an integrated resort in Korea.”

Analyst Cezzane See said: “While 1H18 trade receivable impairments of $9.5m account for only 24.5 per cent of our full-year estimate of $39 million, we keep our forecasts unchanged in the event this normalises in 2H18F.”

Analyst Affin Hwang added: “Its mass market is facing stronger competition from the regional players, but has intensified recently with the opening of new casinos in the Indochina region. We nevertheless believe that this could be a blip, as the shift in demand could be due to novelty effect, and could normalised in the coming quarters.”

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