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Genting Singapore net profit soars 46% in Q3 as attractions business grows

GENTING Singapore has posted a net profit of S$210.4 million in the third quarter, up 46 per cent from the same period a year earlier, as its attractions at Resorts World Sentosa pulled in the crowds.

Revenue in the three months ended Sept 30 rose one per cent to S$639 million. Gaming revenue at integrated resort Resorts World Sentosa (RWS) fell one per cent to S$445.4 million, though this was offset by a 9 per cent rise in non-gaming revenue to S$192.8 million. On a quarter-on-quarter basis, gaming revenue climbed 10 per cent while non-gaming revenue jumped 26 per cent.

The attractions at RWS boosted third-quarter earnings, led by Universal Studios Singapore, S.E.A. Aquarium and Adventure Cove Waterpark, Genting Singapore said in its results filing on Thursday.

"During the quarter, we attained an average daily visitorship of over 22,000 and an increase in average visitor spend across all offerings. Our hotel business continued to outperform the industry with an average occupancy rate of over 97 per cent. Our mass gaming business delivered stable performance. Our VIP rolling volume continued to grow, and we remain prudent in our credit extension," the group added.

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Adjusted earnings before interest, tax, depreciation and amortisation (ebitda) was S$318.8 million, flat from the third quarter last year but up 20 per cent from the preceding quarter.

Earnings per share was 1.75 Singapore cents, up 46 per cent from 1.20 Singapore cents in the third quarter last year.

Net asset value per share was 63.3 Singapore cents as at Sept 30, from 61.8 Singapore cents as at Dec 31 last year.

In the nine months ended Sept 30, net profit was up 29 per cent over the same period last year at S$605.2 million, on a 3 per cent rise in revenue to S$1.87 billion. Higher operating margins from productivity initiatives as well as a more moderate impairment on trade receivables lifted Genting Singapore's nine-month adjusted ebitda by 5 per cent to S$943.6 million.

Genting Singapore said: "With rising global uncertainties and intensifying competition within the region, we will look to sharpen our marketing focus on the regional premium mass customers by refreshing our facilities and products to enhance their gaming experience. Meanwhile, we will continue to pursue VIP rolling volume with measured credit risk appetite.

"On the Japan front, we continue to work steadily towards the expected bidding process for integrated resorts (IRs) in the second half of 2019 following the establishment of the basic policy for developing IRs. Specific cities have shown interest in having an IR, and we have responded to their requests for information, views and comments. Concurrently, we have also engaged in discussions with stakeholders to understand the environment and the localities where such cities are involved."

The shares fell 2.5 Singapore cents or 2.73 per cent to close at S$0.89 on Thursday before results were announced after market close.