Genting Singapore posts 11% rise in Q3 net profit on one-off gain, despite lower revenue

THE net profit of Genting Singapore grew 11 per cent to S$60.7 million for the third quarter ended September, from S$54.4 million in the corresponding period a year ago.

However, this was mainly due to a write-back of accounting accruals of S$45.9 million made in prior periods, in relation to its Yokohama integrated resorts (IR) bid.

The group's adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) was down 31 per cent to S$102.5 million in Q3, from S$149.0 million in the year-ago period.

Total revenue fell 16 per cent to S$251.5 million, from S$301.0 million a year ago.

Revenue from its "Others" segment, which includes its investment business along with other hospitality and support services, led the decline, plunging 98 per cent to S$608,000 in Q3, from S$28.2 million a year ago.

Gaming revenue from the Singapore IR was 9 per cent lower at S$194.7 million; non-gaming revenue fell 6 per cent to S$56.2 million.

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In its quarterly update for Q3, Genting Singapore said the declines were due to the series of enhanced safe-management measures introduced to curb the surge in new community cases, including the reduction in group size for social gathering and prohibition of dining-in at food and beverage (F&B) establishments.

The group added that most of its key offerings at Resorts World Sentosa remained operational during the quarter, but were at considerably lower levels.

Genting Singapore said it was "encouraged " by the implementation of vaccinated travel lanes (VTL), which it called a "significant milestone".

"However, in the short term, we expect minimal increase in overseas visitors' footfall as the countries designated for this quarantine-free travel are from non-traditional source markets," the group said in a bourse filing.

"At the same time, there may be an impact on the IR's visitorship from an outflow of the local population to these countries due to the pent-up demand for international travel," it added.

Shares of Genting Singapore closed 0.6 per cent or half a Singapore cent higher 81.5 cents on Tuesday, before the announcement.