SHARES in Genting Singapore slid to S$1.005 in trading on Wednesday morning, following weaker Q3 FY2014 results which were reported after the market closed on Tuesday.
The counter opened at S$1.03 but gave up 2.5 cents by 10.40am, with 38.44 million shares changing hands, making it the most heavily traded stock by volume. On Tuesday, shares in Genting closed at S$1.04.
The casino operator said that net profit attributable to ordinary shareholders plunged 50 per cent year on year to S$97.39 million, dragged down by softer high-roller or VIP business. Including S$29.7 million apportioned to holders of perpetual capital securities - as was the case for the previous corresponding period - net profit fell 43 per cent to S$127.10 million.
Revenue fell 17 per cent to S$644.77 million while earnings per share dropped to 0.80 Singapore cent from 1.58 Singapore cents.
The casino operator attributed the weak results to the low win rate which impacted the VIP business hard.
"The Asian gaming and tourism industry is experiencing significant challenges in the face of economic slowdown in our major visitor markets and other environmental factors," Genting warned. "We continue to spend in areas of marketing and promotions to improve new and repeat visitation from our traditional markets both in the gaming and non-gaming businesses."
At the same time, it said it saw "encouraging signs" in specific sectors of its gaming business and it aims to fully pursue those opportunities. It has also been striving to boost margins through productivity gains.