Genting Singapore pessimistic about 1H2020 on 'massive disruption' of coronavirus

CASINO and leisure giant Genting Singapore has expressed pessimism over the outlook for the first half of 2020 as the novel coronavirus has "created massive disruption" to the travel and tourism industries.

In its results announcement on Wednesday when it reported a 4 per cent rise in net profit to S$156 million for the fourth quarter, the group said it will embark on a "stronger productivity drive and utilise this period to refresh and develop our offerings".

The group's remarks on the virus outbreak come amid recent news that one of the more recent cases involved a 35-year-old Singapore permanent resident who works at the Resorts World Sentosa (RWS) casino.

In March, the group will celebrate the tenth anniversary of RWS while it executes its S$4.5 billion mega expansion or RWS 2.0, said Genting Singapore.

For the three months to December, revenue fell 9 per cent to S$607 million from S$665 million a year ago. Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) came in at S$288 million, marginally higher by 1 per cent.

Earnings per share stood at 1.29 Singapore cents, up from 1.25 cents. The group has proposed a final dividend of 2.5 Singapore cents per share for the financial year versus 2018's final dividend of two Singapore cents.

Genting Singapore said its non-gaming businesses continued to do well - the hotels achieved an occupancy rate of 92 per cent while its key attractions at RWS welcomed an average daily visitation of over 20,000.

It added that it continues to exercise prudence within the VIP segment. Overall margin improved as a result of productivity and efficiency initiatives implemented in early-2019 that are now bearing results.

For the full year, net profit dropped 9 per cent to S$689 million on the back of a 2 per cent dip in revenue to S$2.5 billion. Adjusted Ebitda declined 3 per cent to S$1.2 billion. Genting Singapore attributed the weaker showing to geopolitical uncertainties and economic volatility.

Genting Singapore shares closed up 1.5 Singapore cents or 1.7 per cent to 87.5 cents on Wednesday.