Genting Singapore H2 profit falls 49%; details of RWS expansion unveiled

INTEGRATED Resort (IR) operator Genting Singapore reported on Thursday (Feb 17) that net profit for its second half fell 49 per cent on year, due to lower visitorship as community Covid-19 cases rose.

Net profit for the 6 months ended Dec 31, 2021, fell to S$95.1 million, down from S$185.9 million during the same period a year earlier. Revenue for the period was also 17 per cent lower, at S$512.5 million.

Noting the "significant" decline in net profit, the operator of Resorts World Sentosa said: "Our IR experienced a decrease in visitorship, largely due to an increase in Covid-19 community cases and the recent emergence of the Omicron variant."

It added that enhanced safe management measures, such as the reduction in group size and prohibition of dining-in had "a profound negative impact on our operating capacity and visitor arrivals".

Gaming revenue fell 16 per cent year-on-year during the second half to S$359.7 million. Non-gaming revenue, meanwhile was up 2 per cent at S$147.2 milliion

The directors have proposed a final dividend of S$0.01, unchanged from a year earlier.

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For the full year, the group's revenue improved marginally, with the impact of Covid-19 continuing to weigh on operations.

Revenue rose to S$1.067 billion in FY21 from S$1.064 billion a year earlier. Net profit was up 165 per cent at S$183.3 million.

On a per share basis, earnings in 2021 improved to S$0.0152 from S$0.0057 a year earlier. As of Dec 31, 2021, the group's net asset value per share stood at S$0.654, up from S$0.649 a year earlier.

The company noted that the government support measures, including the Jobs Support Scheme and SingapoRediscovers vouchers partially mitigated the negative impact of the Covid-19 pandemic on the group's financial performance.

In its outlook, Genting Singapore said there are signs that allow "a sense of optimism" for the tourism industry, including the relaxation of Covid regulations, and resumption of vaccinated travel lanes.

With a gradual return of visitors anticipated in the next 2 years, Genting said it will be harnessing opportunities to refresh and build new visitor offerings.

In a statement on Thursday, Resorts World Sentosa (RWS) said its expansion plan - RWS 2.0 - will begin construction in the second quarter of this year, starting with expansion of 2 attractions.

RWS 2.0 will be the most extensive redevelopment since the IR's opening in 2010, a RWS spokesperson said.

The Universal Studios Singapore theme park will feature a new zone: Minion Land, featuring the Minion characters from the animated movie Despicable Me.

Meanwhile, the S.E.A. Aquarium will also be "significantly enhanced" and rebranded as the Singapore Oceanarium.

Together with other refurbishment works, construction will commence with about S$400 million to be spent as project investment in 2022, RWS said.

Three RWS hotels - Hard Rock Hotel Singapore, Hotel Michael and Festive Hotel - which collectively have over 1,200 roms will also undergo renovation works in phases from Q2, 2022 through 2023. Hotel Michael will remain open through the renovations, while the other 2 hotels will reopen upon completion of renovations.

RWS said the Festive Hotel will be turned into a business-leisure and "workation (work-vacation) hotel" with mobile working spaces and lifestyle offerings. A facility refurbishment and upgrade is also planned for the Resorts World Convention Centre.

Genting Singapore shares closed unchanged at S$0.785 on Thursday, before the earnings announcement.