Genting Q3 profit dips; ploughs on with RWS 2.0
Singapore
RESORTS World Sentosa operator Genting Singapore saw its third-quarter profits plunge, according to results released on Thursday, with the company blaming "headwinds".
Net profit for the three months to Sept 30 fell by 24.5 per cent year on year, to S$158.9 million, as higher sales costs out-paced the top-line fall.
Business expenses deepened the woe from a revenue decline of 6.7 per cent to S$596.1 million, on a double-digit drop in gaming takings from the Singapore integrated resort business.
The gaming business, which makes up the bulk of Genting Singapore's turnover, saw revenue fall by 11 per cent in the quarter, to S$360.8 million.
That was despite a one per cent uptick in non-gaming revenue, to S$234.6 million, as average daily visits to key Resorts World Sentosa sights stayed above the 23,000 mark.
Meanwhile, Genting Singapore is eyeing opportunities from a planned five-year mega-expansion at Resorts World Sentosa and the government's recently announced scheme to redevelop the Sentosa-Brani region.
The group noted in its financial statements that it had faced "a confluence of headwinds" in the quarter, but added that it remains positive on the regional "affluent market" in Asia.
Construction on the "RWS 2.0" expansion will begin in the second half of next year, which is also when the Adventure Dining Playhouse is scheduled to open - the first of a slew of new attractions to be unveiled yearly.
Genting Singapore also pointed to its medium-term growth strategy to diversify into Japan, including integrated resort bids in Osaka and Yokohama. It cited plans to issue new yen-denominated bonds as "another step that the group has been taking to ready ourselves for the opportunity".
For the nine months, Genting Singapore's net profit was down by 12 per cent to S$532.8 million, while revenue was stable at S$1.87 billion.
No dividend was recommended for the quarter, unchanged from the year prior, as the group generally makes payouts twice a year.
The counter closed up by half a Singapore cent, or 0.52 per cent, to S$0.96, before the results.
