Genting Singapore Q1 earnings grow 17%, expects leisure travel recovery to moderate

INTEGRATED resort operator Genting Singapore reported a 17 per cent increase in its net profit after taxation to about S$40.4 million for the first quarter ended Mar 31, 2022, from S$34.5 million in the year-ago period.

This came as revenue grew 13 per cent on the year to S$314.5 million, from S$277.9 million previously, said the mainboard-listed company, which owns Resorts World Sentosa (RWS), in a quarterly business update on Thursday (May 12) evening.

Genting Singapore : G13 0% said it is “encouraged” by the gradual increase in footfall to RWS. However, it expects the pace of recovery in leisure travel to be moderated by the limited flight schedules, high airfares and ongoing travel restrictions on visitors from certain countries.

Meanwhile, higher utilities expenses and the expiry of Covid-19 related government support measures led to a 3 per cent drop in adjusted earnings before interest, tax, depreciation and amortisation, to S$124.8 million for the first quarter.

The group noted that it continues to refresh and build new visitor offerings so it may emerge stronger from the pandemic and capture any upswing in demand. Construction works on both Minion Land and the Singapore Oceanarium are scheduled to start in the second quarter of 2022.

Renovation works to transform Festive Hotel into a “bleisure” (business and leisure) and “workation” (work and vacation) hotel as well as the facility upgrade at Resorts World Convention Centre are targeted to start in the second half of 2022. Genting Singapore said these are meant to strengthen RWS’s position as a leading business-leisure destination that meets the needs of post-pandemic travellers.

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The hospitality group added that it is “cautiously optimistic” of the recovery trajectory, with Singapore having reopened its international borders to fully vaccinated travellers from Apr 1 and further relaxed pandemic-related rules.

Shares of Genting Singapore fell S$0.015 or 1.9 per cent to close at S$0.765 on Thursday, before the bourse filing was released.