Operator News

Singapore – Resorts World Sentosa to benefit from $400m expansion

By Phil - 18 February 2022

Genting Singapore posted a significant 49 per cent decline in net profit to $95.1m in the second half of 2021, due to a decrease in visitation, largely due to an increase in COVID-19 community cases and the recent emergence of the Omicron variant. The group confirmed plans to invest $400m on expanding several non-gaming attractions at the resort.

A series of enhanced safe management measures, such as the reduction in group size for social gathering and prohibition of dining-in at Food and Beverage (F&B) establishments, were introduced to contain the spread of the virus. These had a profound negative impact on our operating capacity and visitor arrivals.

For the full year ended 31 December 2021, Genting Singapore‘s revenue and adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) improved marginally as compared to the previous year as we continue to grapple with the pressure and limitations on its operations arising from the COVID-19 pandemic.

The operator said: “We are appreciative of the Singapore Government’s support measures, including the Jobs Support Scheme and the $100 SingapoRediscovers vouchers that partially mitigated the negative impact of the COVID-19
pandemic on the Group’s financial performance. During the financial year, the Group acquired leasehold land for the expansion of its Singapore integrated resort, which resulted in an increase in non-current assets. The acquisition has been included in the purchases of property, plant and equipment amounting to $942m in the Group’s Statement of Cash Flows for the financial year ended 31 December 2021.”

“Whilst the COVID-19 pandemic has severely impacted the business of the Group, there are signs that allow us a sense of optimism for the travel and tourism industry. We are hopeful that with further relaxation of Singapore’s COVID-19 related regulations and gradual resumption of mutual vaccinated travel lanes (VTLs), more travellers will return to Singapore in 2022. However, such tourism flow is expected to be mostly small groups of FIT (Free Independent Traveller) leisure and business travellers,” it added.

“As we anticipate a gradual return of visitors from our traditional markets over the next two years, we remain resilient and continue to harness opportunities to refresh and build new visitor offerings to emerge stronger from the pandemic for the return of visitors to pre-COVID levels. With this in mind, we are moving forward with our reinvestment and expansion plans at Resorts World Sentosa (RWS). The preparation works for Universal Studios Singapore’s new themed zone, Minion Land and the Singapore Oceanarium (SGO) have been progressing steadily. The tender for the construction of Minion Land has been awarded. A total amount of about $400m will be invested in 2022 for RWS 2.0 and related refurbishment works.

“To be expanded by three times the size of the current S.E.A. Aquarium, the SGO with its immersive and
multi-sensory storytelling of the evolution of the oceans’ inhabitants will become Singapore’s new tourism
icon and an institution to champion marine education and protection of our environment. We are pleased
that RWS and National University of Singapore (“NUS”) launched the RWS-NUS Living Laboratory on 5
January 2022. With RWS committing S$10 million in funding support, the Living Laboratory places RWS
and NUS at the forefront to deliver on Singapore’s long-term goals to achieve sustainable tourism.

Genting Singapore added: “The Group is pleased that the Casino Regulatory Authority has renewed RWS’s casino licence for another three years with effect from 6 February 2022. As Singapore’s first integrated resort and a key tourism player, we are committed to upholding the best-in-class social safeguards and promoting responsible
gambling at our casino, while continuing to reinvest and expand the IR’s offerings to ensure that RWS
remains a world-class destination to support the sustainable recovery of Singapore’s tourism,” it concluded.