Genting Singapore Q1 net profit drops 55% to S$65.2 million on lower gaming revenue

[SINGAPORE] Genting Singapore , which operates Resorts World Sentosa (RWS), on Tuesday (May 12) posted a net profit of S$65.2 million for its first quarter ended Mar 31, down 55 per cent from S$145 million in the year-ago period.

Group revenue fell 3 per cent on the year to S$607.6 million from S$626.2 million, driven by lower gaming revenue which dropped 8 per cent to S$403.4 million from S$437.5 million.

The group said that “steady operational progress” was made in the quarter, noting that gaming revenue showed “improving momentum towards the end of the period”.

Meanwhile, non-gaming revenue rose 8 per cent on the year to S$204.1 million from S$188.5 million, supported by higher visitation to key attractions including Universal Studios Singapore and the Singapore Oceanarium at RWS.

Adjusted earnings before interest, taxes, depreciation and amortisation fell 24 per cent to S$179 million from S$235.8 million in the previous corresponding period.

Genting Singapore said that the ongoing conflict in the Middle East and current geopolitical developments have increased cost pressures across supply chains. This has led to higher energy, freight and logistics expenses, while elevated airfares also weighed on travel demand and dampened consumer sentiments.

The group noted that it will address these challenges while seeking to capture opportunities through targeted programming and market-focused initiatives.

It will also focus on asset optimisation to enhance guest experience and broaden revenue streams. This includes delivering seasonal events and promotions to improve resort vibrancy and guest engagement, alongside refreshed lifestyle and dining concepts.

Recent openings in April include premium day spa Bodhi Spa at luxury hotel The Laurus, alongside Quan Hotpot restaurant and the addition of new tenants such as People People Brewing Co. The group has also launched attraction season passes to drive repeat visitation.

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The integrated resort operator’s Q1 profit is in contrast with that of Marina Bay Sands, which on Apr 22 reported a new high for the first quarter. Its earnings climbed 30.2 per cent to US$788 million – or S$1 billion – for the three months ended Mar 31.

In its previous earnings in February, Genting Singapore’s net profit for the second half of its financial year declined 30 per cent year on year to S$155.6 million, from S$222 million, although revenue rose 5 per cent to S$1.24 billion, from S$1.17 billion previously, as newly refreshed offerings lifted resort activity.

The group said then that ongoing capital expenditure for its RWS 2.0 transformation had affected its cash flow and balance sheet. It added that the refreshment of existing assets and construction progress led to significant cash outflows.

The counter ended 1.5 per cent or S$0.01 higher at S$0.69 before the news.