Genting Singapore Q1 earnings more than triple to S$129.2 million amid travel recovery

GENTING Singapore saw its net profit after taxation more than triple to S$129.2 million for the first quarter ended Mar 31, 2023, from S$40.4 million in the year-ago period.

This came as revenue for the period grew 54 per cent on the year to S$484.5 million, from S$314.5 million previously, said the mainboard-listed company, which owns Resorts World Sentosa (RWS), in a quarterly business update on Friday (May 12).

The integrated resort operator said that RWS has continued to benefit from the ongoing recovery of regional travel and gaming demand.

In contrast, the recovery of its non-gaming business was constrained by lagging overseas visitor arrivals from its traditional visitor source markets, the company added.

Airline capacity constraints have also capped incoming mass leisure tourist traffic, while the elevated airfares during the festive seasons have impacted visitor volume for attractions.

By segment, the company’s gaming business contributed S$339.9 million in revenue in the first quarter, up 45 per cent from S$234.5 million recorded the previous year.

Meanwhile, its non-gaming segment saw revenue grow 89 per cent to S$144.4 million, from S$76.3 million the year before.

Revenue from the “others” segment, which represents the group’s investment business along with other hospitality and support services, fell 96 per cent to S$169,000, from S$3.8 million previously.

Looking ahead, the group will continue to enhance its product offerings to “upscale RWS’ destination appeal and achieve better demand from our target markets”.

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For instance, The Forum at RWS will be renovated from May to double its gross floor area to around 20,000 square metres over three levels, providing a wide variety of upscale restaurants, specialty shops and concept stores. The works are scheduled to be completed by end-2024.

Construction works are also underway at Universal Studios Singapore’s Minion Land, as well as the Singapore Oceanarium, with soft openings scheduled for early 2025.

Shares of Genting Singapore closed S$0.01 or 0.9 per cent lower at S$1.11 on Friday, before the results were announced.